Federal rule banning noncompete agreements could give Wisconsinites more job mobility

A new federal rule could give Wisconsin workers more mobility in the labor market, but it faces legal challenges from business groups. Michael Childers, a labor education professor at the University of Wisconsin-Madison, said noncompete agreements were initially intended to prevent high-level employees from sharing trade secrets with competing companies. Over time, he said, those agreements have extended to rank and file workers. “Workers are basically being told, ‘You have to agree to this as a condition of employment,’” Childers said. “If you do accept the position and sign the contract, and you decide to leave, then you fear that the company will strictly enforce that noncompete. It greatly limits your opportunities in terms of what you’re able to do to earn a living.”