non-compete clause

Non Compete Information

Unfortunately, it is impossible to definitively answer your question without additional information. Having said that, I can say that non compete agreements, or covenants not to compete, are disfavored by the courts. However, a carefully drafted non compete agreement will be upheld and enforced against a departing employee if all the elements are met. Generally, to be valid, a non compete agreement must be reasonable as to duration of time, reasonable as to geography (or customer/client restriction), it must be necessary for the protection of the employer's business (i.e. the employer must have a "protectable interest"), it cannot be unduly harsh to the employee, and it cannot be against public policy. The great thing about the State of Wisconsin is that if even one of those elements are not satisfied by the employer, the entire covenant not to compete is invalidated. With regard to the geographic restriction only, in your case 10 miles, courts have repeatedly held that relatively small geographic restrictions are reasonable. This obviously raises the question of 10 miles from what? If it's a nation-wide hospital, does the agreement prohibit you from obtaining employment within 10 miles from each and every location or just the location at which you currently are located? Another bit of information that would be helpful is what type of information the hospital is trying to protect with this agreement; i.e. does it, in fact, have a protectable interest? Again, it is impossible to provide you with a definitive answer without reviewing your non compete in great detail and discussing the facts of your employment and job duties with you.

posted by Shannon McDonald  |  Mar 4, 2008 2:02 PM [EST]