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LRB-5079/1
JAM:amn
2021 - 2022 LEGISLATURE
November 19, 2021 - Introduced by Senators Nass, Marklein, Stroebel, Bernier
and Felzkowski, cosponsored by Representatives VanderMeer, Neylon,
Magnafici, Allen, Cabral-Guevara, Dittrich, Horlacher, Knodl, Moses,
Plumer, Sortwell, Thiesfeldt and Wichgers. Referred to Committee on
Labor and Regulatory Reform.
SB708,1,2 1An Act to renumber and amend 103.465; and to create 103.465 (2) of the
2statutes; relating to: restrictive covenants applicability.
Analysis by the Legislative Reference Bureau
Under current law, a covenant by an assistant, servant, 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 is lawful and enforceable only if the restrictions imposed
are reasonably necessary for the protection of the employer or principal. Any such
covenant imposing an unreasonable restraint is illegal, void, and unenforceable even
as to any part of the covenant or performance that would be a reasonable restraint.
This bill provides that a covenant by an assistant, servant, or agent not to
compete with his or her employer or principal after the termination of that
employment or agency within a specified territory and during a specified time is
considered an unreasonable restraint and is considered illegal, void, and
unenforceable if the employer or principal employs at least 100 employees and the
assistant, servant, or agent is terminated from that employment or agency for
choosing not to receive a COVID-19 vaccine, or for refusing to provide information
regarding the individual's COVID-19 vaccination status.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB708,1
1Section 1. 103.465 of the statutes is renumbered 103.465 (1) and amended to
2read:
SB708,2,103 103.465 (1) A covenant by an assistant, servant or agent not to compete with
4his or her employer or principal during the term of the employment or agency, or after
5the termination of that employment or agency, within a specified territory and
6during a specified time is lawful and enforceable only if the restrictions imposed are
7reasonably necessary for the protection of the employer or principal. Any covenant,
8described in this section, subsection imposing an unreasonable restraint is illegal,
9void and unenforceable even as to any part of the covenant or performance that would
10be a reasonable restraint.
SB708,2 11Section 2. 103.465 (2) of the statutes is created to read:
SB708,2,1912 103.465 (2) Notwithstanding sub. (1), a covenant by an assistant, servant, or
13agent not to compete with his or her employer or principal after the termination of
14that employment or agency within a specified territory and during a specified time
15shall be considered an unreasonable restraint and shall be considered illegal, void,
16and unenforceable if the employer or principal employs at least 100 employees and
17the assistant, servant, or agent is terminated from such employment or agency for
18choosing not to receive a COVID-19 vaccine, or for refusing to provide information
19regarding his or her COVID-19 vaccination status.
SB708,3 20Section 3. Initial applicability.
SB708,2,2321 (1) Restrictive covenants in employment and agency relationships. This act
22first applies to a covenant entered into or extended, modified, or renewed on the
23effective date of this subsection.
SB708,2,2424 (End)
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