NEW LAW – Employee Nonsolicitation Agreements

April 25th, 2018 | Posted by Christopher Sitzmann in Business Law | Employment Law | Law Blog - (Comments Off on NEW LAW – Employee Nonsolicitation Agreements)

Attention Employers!

Do you have Agreements with your Employees that prohibit them from soliciting other Employees from your business after they leave?  Oftentimes this Agreement is part of a Non-Compete Agreement.

A 2018 Wisconsin Supreme Court Decision makes it more difficult for Employers to enforce these Nonsolicitation Agreements.  The provisions in the Agreements should be specifically drafted for each Employee depending on their position, level of influence over other Employees, and the competitive threat the Employee poses to the Company.

In this case, John Lanning, a 25-year employee, resigned from his job and went to work for a competing business.  He ended up soliciting 9 other employees to follow him to the competitor.  Because the Nonsolicitation clause in his employment agreement was too broad, he was allowed to do this and his former employer had no recourse.

A Nonsolicitation Agreement must serve a legitimate and competitive interest.  Prohibitions on solicitation of ALL Employees are likely unenforceable and will cause the entire Agreement to be unenforceable.

All Employment Agreements that contain nonsolicitation Clauses should be reviewed and revised.


Beware: Corporate Records Service

February 20th, 2013 | Posted by Sara Micheletti in Business Law | Law Blog - (Comments Off on Beware: Corporate Records Service)

A business called “Corporate Records Service” has been mailing a form to all Wisconsin Businesses requesting information about your business and $125 so they can maintain your business records.

This form was NOT issued by the State and is NOT required to maintain your business status.  The Wisconsin Department of Financial Institutions issued a cautionary press release regarding this form (see here).  We urge you to take caution with this form.  We recommend that you do not complete this form, or pay Corporate Records Service any money.

As DFI suggests, if you do choose to fill out the form and pay Corporate Records Service, please make sure you will be getting some type of service in return.

Please contact Sitzmann Law Firm if you have any questions or concerns about this form.