Bill
Bill > AB902
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 a former employee or agent from recruiting an employee or agent of an employer or principal to work for a different employer or principal after the termination of the former employee's employment or agent's agency is illegal, void, and unenforceable.
AI Summary
This bill prohibits the use of nonsolicitation clauses in employment contracts that prevent a former employee from recruiting other employees to work for a different employer after the termination of employment. Current law allows for reasonable non-compete agreements, but this bill specifies that any provision in an employment contract that prohibits a former employee from soliciting other employees is considered an unreasonable restraint on trade and is therefore illegal, void, and unenforceable. The bill also requires employers to post notices explaining that such nonsolicitation provisions are prohibited. 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)*,
Darrin Madison (D)*,
Lori Palmeri (D)*,
Christine Sinicki (D)*,
Tim Carpenter (D),
Last Action
Failed to pass pursuant to Senate Joint Resolution 1 (on 04/15/2024)
Official Document
bill text
bill summary
Loading...
bill summary
Loading...
bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://docs.legis.wisconsin.gov/2023/proposals/reg/asm/bill/ab902 |
| AB902 ROCP for Committee on Labor and Integrated Employment | https://docs.legis.wisconsin.gov/2023/related/records/assembly/labor_and_integrated_employment/1789168.pdf |
| BillText | https://docs.legis.wisconsin.gov/document/proposaltext/2023/REG/AB902.pdf |
Loading...