Assembly Bill 567 seeks to amend existing laws regarding covenants not to compete in employment contracts in Wisconsin. The bill renumbers and amends section 103.465, changing its title from "Restrictive covenants" to "Covenants not to compete in employment contracts." It establishes that while covenants preventing competition during employment are lawful if reasonably necessary for the employer's protection, any such covenants that extend beyond the termination of employment are deemed illegal, void, and unenforceable. The bill also clarifies that nondisclosure agreements related to personal information and restrictions on the unauthorized use of customer lists or intellectual property remain enforceable.

Additionally, the bill introduces definitions for terms such as "copyright," "customer list," "intellectual property," "nondisclosure agreement," "patent," and "trade secret." It mandates that employers post notices in conspicuous locations, including their websites, informing employees that covenants not to compete after termination are illegal, with specified exceptions. The provisions of this act will apply to any covenants entered into, extended, modified, or renewed on or after the effective date of the legislation.

Statutes affected:
Bill Text: 103.465(title), 103.465