On July 14, 2022, the Wisconsin Court of Appeals ruled in favor of a former employee in a dispute over whether two uniquely worded restrictive covenants against him violated Wisconsin law. The case presents new considerations regarding what employers can and cannot include in noncompete clauses with severed employees.
Facts
Carlos Godina was hired by Diamond Assets LLC to work in sales and signed a contract that contained three provisions at issue in the case: two restrictive covenants (a noncompete agreement and a confidentiality agreement) and a severability clause. The employer asked the court to enforce the contract when he terminated his employment and sent an email containing “confidential” information to a third party.
