Manitowoc Co. v. LanningAnnotate this Case
Although Wis. Stat. 103.465 explicitly refers to a covenant not to compete, the plain meaning of the statute is not limited to covenant in which an employee agrees not to compete with a former employer.
Plaintiff imposed a non-solicitation of employees provision as part of Defendant’s employment agreement. The provision prohibited Defendant from soliciting, inducing, or encouraging any employee of Plaintiff to terminate his or her employment or to accept employment with a competitor, supplier or customer of Plaintiff. Plaintiff claimed that Defendant engaged in actions that violated the non-solicitation of employees provision. The circuit court concluded that the provision was reasonable and enforceable under section 103.465. The court of appeals reversed. The Supreme Court affirmed, holding that Defendant’s non-solicitation of employees provision was a restraint of trade governed by section 103.465 and was unenforceable under the statute because it did not meet the statutory requirement that the restriction be “reasonably necessary for the protection of the employer.”