Bill
Bill > AB903
summary
Introduced
01/04/2024
01/04/2024
In Committee
01/04/2024
01/04/2024
Crossed Over
Passed
Dead
04/15/2024
04/15/2024
Introduced Session
2023-2024 Regular Session
Bill Summary
Under current law, a covenant by an employee or agent not to compete with his or her employer or principal during the term of the employment or agency, or after the termination of that employment or agency, within a specified territory and during a specified time (covenant not to compete) is lawful and enforceable if the restrictions imposed are reasonably necessary for the protection of the employer or principal. Currently, any covenant not to compete that imposes an unreasonable restraint on an employee or agent is illegal, void, and unenforceable even as to any part of the covenant that would be a reasonable restraint. This bill provides that a provision in an employment contract that prohibits an employee or agent from disparaging an employer or principal after the termination of the employment or agency is illegal, void, and unenforceable.
AI Summary
This bill prohibits the use of nondisparagement clauses in employment contracts. Specifically, it states that any provision in an employment contract that requires an employee or agent not to disparage their former employer or principal after the termination of employment is an unreasonable restraint on trade and is therefore illegal, void, and unenforceable. The bill also requires employers and principals to post a notice explaining this prohibition on their premises and website, if applicable. The bill applies to employment contracts entered into, extended, modified, or renewed on or after the effective date of the legislation.
Committee Categories
Labor and Employment
Sponsors (7)
Clint Anderson (D)*,
Jimmy Anderson (D)*,
Mike Bare (D)*,
Jodene Emerson (D)*,
Darrin Madison (D)*,
Christine Sinicki (D)*,
LaTonya Johnson (D),
Last Action
Failed to pass pursuant to Senate Joint Resolution 1 (on 04/15/2024)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://docs.legis.wisconsin.gov/2023/proposals/reg/asm/bill/ab903 |
| AB903 ROCP for Committee on Labor and Integrated Employment | https://docs.legis.wisconsin.gov/2023/related/records/assembly/labor_and_integrated_employment/1789167.pdf |
| BillText | https://docs.legis.wisconsin.gov/document/proposaltext/2023/REG/AB903.pdf |
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