Inconsistent Restrictions May Render Your Noncompete Unenforceable

A decision from a Wisconsin state court serves as an important reminder that employers should think twice before subjecting similarly situated employees to different restrictive covenants.

The Circuit Court of Waukesha County recently denied Kohl's Department Stores' ("Kohl's") request for a temporary injunction barring a former executive, Janet Schalk, from accepting employment with a competing company. Schalk was employed by Kohl's as its Chief Information Officer until she resigned on July 22, 2015 to take a similar position at Hudson's Bay. Schalk's employment contract with Kohl's contained a restrictive covenant that prohibited her from taking a similar position with a competitor until one year had elapsed after her separation of employment with Kohl's. Kohl's sought to enforce the restrictive covenant to prevent Schalk from working for Hudson's Bay.