Federal & State Regulations | Employment contracts - Wisconsin

State Info

Summary of differences between federal and state regulations

Federal law generally does not regulate employment contracts between employers and employees with one exception: contracts that require the joining or refraining from joining of a labor union as a condition of employment. On the federal level, these contracts are governed by the National Labor Relations Act. States may have a corresponding provision and may also have additional provisions regarding employment contracts.

Wisconsin law has a similar provision to federal law concerning union membership. There are also additional provisions in relation to employment contracts.

Union membership

Any employment contract or agreement which requires union membership or non-membership of an employee or prospective employee as a condition of employment is void and unenforceable. Wisconsin Statutes Annotated Chapter 103 §103.46 and §103.52

Waiver of rights

Any agreement by an employee to waive the employee's right to unemployment compensation benefits is void. WSA Chapter 108 §108.12

Covenant not to compete

A covenant by an employee not to compete for business with the employer after termination of employment is lawful if the agreement sets forth a specific geographic territory and time frame, and if the restrictions imposed are reasonably necessary to protect the employer’s business. WSA Chapter 103 §103.465