When was the last time your company engaged legal counsel to
review its noncompete agreements to determine their enforceability?
In this rapidly evolving area of law, noncompete agreements should
be regularly reviewed and updated. This e-alert identifies common
problems that may render a noncompete agreement unenforceable.
1. Lack of Time Limitation. In Wisconsin, noncompete agreements
should contain a reasonable time limitation on the employee's
post-employment restricted activities. The lack of a time
limitation, or a time limitation that is unreasonable, may result
in the agreement being adjudged unenforceable.
2. Insufficient Consideration. Wisconsin law provides that
merely offering continued employment to an existing employee in
exchange for signing a noncompete agreement is generally
insufficient consideration. Instead, employers should offer
existing employees something of additional value (e.g.,
bonus, raise, promotion, etc.). Employers should review
