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SB1175: Bill Text
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2025 - 2026 LEGISLATURE
LRB-6579/1
MIM:emw
2025 SENATE BILL 1175
March 19, 2026 - Introduced by Senators
L. Johnson
and
Roys
, cosponsored by Representatives
Bare
,
Udell
,
Anderson
,
Clancy
,
Goodwin
,
Sinicki
and
Stubbs
. Referred to Committee on Government Operations, Labor and Economic Development.
SB1175,1,3
1
An Act
to renumber and amend
103.465;
to amend
103.465 (title);
to create
2
103.465 (2) and (3) of the statutes;
relating to:
prohibitions on
3
nondisparagement clauses in employment contracts.
Analysis by the Legislative Reference Bureau
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 on trade.
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.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
SB1175,1
1
Section
1
.
103.465 (title) of the statutes is amended to read:
SB1175,2,3
2
103.465
(title)
Restrictive covenants in employment contracts
;
3
prohibitions
.
SB1175,2
4
Section
2
.
103.465 of the statutes is renumbered 103.465 (1) and amended to
5
read:
SB1175,2,14
6
103.465
(1)
Covenants in employment contracts not to compete.
A
7
covenant by an assistant, servant
, employee,
or agent not to compete with his or her
8
employer or principal during the term of the employment or agency, or after the
9
termination of that employment or agency, within a specified territory and during a
10
specified time is lawful and enforceable only if the restrictions imposed are
11
reasonably necessary for the protection of the employer or principal. Any covenant,
12
described in this
section, imposing
subsection, that imposes
an unreasonable
13
restraint
on trade
is illegal, void
,
and unenforceable even as to any part of the
14
covenant or performance that would be a reasonable restraint
on trade
.
SB1175,3
15
Section
3
.
103.465 (2) and (3) of the statutes are created to read:
SB1175,2,21
16
103.465
(2)
Nondisparagement provisions in employment contract
17
after termination of employment or agency prohibited.
A provision in an
18
employment contract that requires an assistant, servant, employee, or agent not to
19
disparage his or her former employer or former principal in writing or in speech
20
after the termination of the employment or agency imposes an unreasonable
21
restraint on trade and is illegal, void, and unenforceable.
SB1175,3,6
22
(3)
Notice posted.
Each employer and principal shall post, in one or more
23
conspicuous places where notices to assistants, servants, employees, and agents are
1
customarily posted, and in a conspicuous place on the employer’s or principal’s
2
website if the employer or principal maintains a website, a notice in a form
3
approved by the department that explains that an employment contract provision
4
that prohibits a former employee or agent from disparaging the employer or
5
principal after termination of employment or agency is an unreasonable restraint
6
on trade and is illegal, void, and unenforceable.
SB1175,4
7
Section
4
. Initial applicability.
SB1175,3,10
8
(
1
)
Nondisparagement provision in employment contracts.
This act first
9
applies to a nondisparagement provision in an employment contract that is entered
10
into, extended, modified, or renewed on the effective date of this subsection.
SB1175,3,11
11
(end)
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section
true
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