A covenant not to compete generally implies that a Wisconsin employee makes an agreement not to work for any of their employer's competitors should they leave the company for any reason. These covenants are typically called "non-compete clauses". Employees who sign them can either receive compensation or simply be required to agree as a condition for their employment.
When are Covenants not to Compete Unenforceable?
Foreseeing whether or not a judge will uphold a covenant not to compete is generally difficult. Even if the employee's interests may be significant Wisconsin courts will certainly assign great weight to a person's freedom to choose the type of employment that is suitable for them. Accordingly, only those covenants which are deemed to be reasonable will be upheld by the court. Some provisions that courts have considered to be unreasonable include terms that last for an unusually long period of time or that cover a geographic around Franklin that is unreasonably broad.
The agreements must also deal only with those competitors whose line of employment is reasonably related to the previous employer's. Finally, the employer must have a legitimate business interest behind its motivation for mandating a covenant not to compete.
Do I Need an Attorney when Dealing with a Covenant not to Compete?
A Franklin, Wisconsin lawyer can help you review the covenant before you sign any documents that might limit your rights. The lawyer can help you in negotiating modifications or if needed, they can possibly draft a new agreement which will be acceptable to both parties. When it comes to suing an employee for breach of a non-compete clause, an attorney can provide valuable advice. They will also be able to counsel employees who need advice for a covenant they have signed.