Of the various types of post-employment restrictions imposed on employees, a restriction on the recruitment of former co-workers (sometimes referred to as a “no-poach” or “anti-raiding” clause) is the type most likely to be enforced by a court. As a result, this is one type of post-employment restriction that is frequently drafted without the careful thought generally put in to traditional non-competes and client non-solicitation clauses.  But in what could be a foreshadowing of closer judicial scrutiny of co-worker non-solicitation clauses nationwide, the Wisconsin Supreme Court recently held that the Wisconsin non-compete statute applies to such clauses, and that the
Continue Reading Wisconsin Supreme Court Strikes Down Co-Worker Non-Solicitation Clause

Over the past 24 months, one of the hottest issues in non-compete law has been whether continued at-will employment, by itself, is sufficient consideration for a non-compete.

Last week, in Runzheimer International v. Friedlen and Corporate Reimbursement Services, Inc., the Wisconsin Supreme weighed in on this issue, holding that continued employment is sufficient consideration for a non-compete signed by a current at-will employee.  However, the Court expressly qualified this holding by explaining that if an at-will employee is fired “shortly after signing” a non-compete, the non-compete would “likely” be voidable and subject to rescission. The Court further qualified
Continue Reading Wisconsin Supreme Court Holds That Continued Employment Is Sufficient Consideration For A Non-Compete Signed By A Current At-Will Employee, Provided That The Employee Is Not Fired Shortly After Signing

This week, a Wisconsin Court of Appeals issued a decision determining that a non-compete clause does not render an arbitration clause in an employment agreement unenforceable.
Continue Reading Wisconsin Court Determines Noncompete Clause Does Not Render Arbitration Clause in Employment Agreement Unenforceable