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.