Wisconsin SB 657: Relating to: noncompete clauses for medical practitioners.

Bill Text

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2025 SENATE BILL 657
November 14, 2025 - Introduced by Senators CABRAL-GUEVARA, NASS and ROYS,
cosponsored by Representatives NEYLON, O'CONNOR, DITTRICH, GREEN,
GUSTAFSON, KNODL, MURPHY, WICHGERS and STEFFEN. Referred to
Committee on Licensing, Regulatory Reform, State and Federal Affairs.
AN ACT to renumber and amend 103.465; to amend 103.465 (title), 103.465
(2) (a) 1. and 103.465 (2) (a) 2.; to create 103.465 (2) and 103.465 (2) (a) 1m. of
the statutes; relating to: noncompete clauses for medical practitioners.
Analysis by the Legislative Reference Bureau
This bill makes changes regarding covenants not to compete for advanced
practice registered nurses, advanced practice nurse prescribers, physicians,
physician assistants, and psychologists (“medical practitioners”).
Under current law, a covenant by an assistant, servant, or agent not to
compete with his or her employer or principal during the term of the employment or
agency, or after the termination of the employment or agency, within a specified
territory and during a specified time is lawful and enforceable only if the
restrictions imposed are reasonably necessary for the protection of the employer or
principal. A covenant not to compete that imposes an unreasonable restraint,
however, is illegal, void, and unenforceable even as to any part of the covenant that
would be a reasonable restraint.
The bill provides that a covenant by a medical practitioner not to compete with
his or her employer after the termination of the employment imposes an
unreasonable restraint and is illegal, void, and unenforceable if the covenant
includes a restriction that prohibits working as a medical practitioner for more than
24 consecutive months after the first day of the medical practitioner’s employment
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with the employer that is imposing the covenant not to compete. The bill also
provides that a covenant not to compete by a medical practitioner is illegal, void,
and unenforceable if the medical practitioner’s employment is terminated for any
reason by the medical practitioner’s employer.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SECTION 1. 103.465 (title) of the statutes is amended to read:
103.465 (title) Restrictive covenants Covenants not to compete in
employment contracts.
SECTION 2. 103.465 of the statutes is renumbered 103.465 (1) and amended to
read:
103.465 (1) COVENANTS NOT TO COMPETE; GENERALLY. A Except as provided
in sub. (2), a covenant by an employee, assistant, servant, or agent not to compete
with his or her employer or principal during the term of the employment or agency,
or after the termination of that employment or agency, within a specified territory
and during a specified time is lawful and enforceable only if the restrictions
imposed are reasonably necessary for the protection of the employer or principal.
Any covenant, described in this section, imposing subsection that imposes an
unreasonable restraint is illegal, void, and unenforceable even as to any part of the
covenant or performance that would be a reasonable restraint.
SECTION 3. 103.465 (2) of the statutes is created to read:
103.465 (2) COVENANTS NOT TO COMPETE; MEDICAL PRACTITIONERS. (a) In
this subsection:
1. “Advanced practice nurse prescriber” means an advanced practice nurse
who is certified under s. 441.16 (2).
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2. “Medical practitioner” means an advanced practice nurse prescriber, a
physician, a physician assistant, or a psychologist.
3. “Physician” has the meaning given in s. 448.01 (5).
4. “Physician assistant” has the meaning given in s. 448.971 (2).
5. “Psychologist” means an individual licensed under ch. 455.
(b) A covenant by a medical practitioner not to compete with his or her
employer after the termination of the employment imposes an unreasonable
restraint and is illegal, void, and unenforceable, even as to any part of the covenant
that would be a reasonable restraint, if the covenant includes a restriction that
prohibits working as a medical practitioner for more than 24 consecutive months
after the first day of the medical practitioner’s employment with the employer.
(c) A covenant by a medical practitioner not to compete with his or her
employer after the termination of the employment shall be considered an
unreasonable restraint and shall be considered illegal, void, and unenforceable if
the medical practitioner’s employment is terminated for any reason by the
employer.
SECTION 4. 103.465 (2) (a) 1. of the statutes, as created by 2025 Wisconsin Act
.... (this act), is amended to read:
103.465 (2) (a) 1. “Advanced practice nurse prescriber” means an advanced
practice nurse who is was certified under s. 441.16 (2), 2023 stats.
SECTION 5. 103.465 (2) (a) 1m. of the statute