Wisconsin Non-Disclosure Agreement Requirements
Wisconsin Statute Section 103.465 traces to 1957, when the legislature enacted it specifically to overrule earlier Wisconsin Supreme Court decisions that had allowed courts to blue-pencil, or judicially narrow, an overbroad restrictive covenant down to something enforceable.
Introduction
Wisconsin Statute Section 103.465 traces to 1957, when the legislature enacted it specifically to overrule earlier Wisconsin Supreme Court decisions that had allowed courts to blue-pencil, or judicially narrow, an overbroad restrictive covenant down to something enforceable. Under that statute, if any part of a covenant not to compete, not to solicit, or to keep information confidential is found unreasonable, the entire covenant is void, not just the unreasonable part. A Non-Disclosure Agreement in Wisconsin is otherwise an ordinary confidentiality contract, mutual or one-way, in which one or both parties agree to protect specified information from disclosure. Because Wisconsin courts have applied Section 103.465 to confidentiality and non-disclosure provisions that function as restraints on someone's ability to work, an NDA whose confidentiality definition reaches too far can lose its protection entirely rather than being trimmed back by a court. Trade secrets shared under a Wisconsin NDA are separately protected by the Wisconsin Uniform Trade Secrets Act (Wisconsin Statute Section 134.90), and a misappropriation claim generally must be filed within three years of when the misappropriation was discovered or reasonably should have been discovered, under Wisconsin Statute Section 893.51(2). Wisconsin has no statute carving out an employee's own-time inventions from an invention-assignment clause, unlike states such as California, Illinois, or Washington, so any invention-assignment language in a Wisconsin NDA or employment agreement is governed by ordinary contract law rather than a specific statutory limit. The practical drafting effect is significant: because there is no judicial fallback to save part of an overbroad clause, precise, narrowly tailored confidentiality language matters more in Wisconsin than in states that allow reformation.
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Key Things to Know
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Trade secret protection in Wisconsin runs through the Wisconsin Uniform Trade Secrets Act (Wisconsin Statute Section 134.90), separate from whatever the NDA itself says.
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That statute applies an all-or-nothing rule to restrictive covenants, including overbroad confidentiality provisions: if any part of the covenant is found unreasonable, the entire covenant is void and unenforceable, with no judicial blue-penciling to save the reasonable parts.
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That all-or-nothing rule is why confidentiality language in a Wisconsin NDA needs to be drafted narrowly. A definition of confidential information broad enough to functionally restrict where or how someone can work risks voiding the whole covenant, not just the overbroad clause.
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Wisconsin Statute Section 103.465 dates to 1957, when the legislature enacted it specifically to overrule earlier Wisconsin Supreme Court decisions that had allowed courts to blue-pencil, or judicially narrow, an overbroad restrictive covenant down to something enforceable.
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A trade secret misappropriation claim in Wisconsin generally must be filed within three years of when the misappropriation was discovered or reasonably should have been discovered, under Wisconsin Statute Section 893.51(2).
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Wisconsin has no statute carving out inventions an employee develops on their own time from an invention-assignment clause in an NDA or employment agreement, unlike states such as California, Illinois, or Washington; any own-time invention dispute is governed by ordinary contract principles.
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Mutual NDAs, where both sides share confidential information, and one-way NDAs, where only one side does, are both ordinary enforceable contracts in Wisconsin; which one fits depends on whether the exchange runs both directions, like a partnership discussion, or one direction, like pitching an investor.
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A Wisconsin court can order injunctive relief to stop an ongoing or threatened breach of a valid NDA, in addition to any damages the disclosure caused.
Key decisions before you file
Before you file a Non-Disclosure Agreement in Wisconsin, a few decisions shape the document: which option to choose and what each one means. The Non-Disclosure Agreement guide walks through them.
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Wisconsin Requirements for Non-Disclosure Agreement
Definition of Confidential Information (Wisconsin Statute Section 134.90)
Clearly defines what constitutes confidential information under Wisconsin law, including trade secrets as defined in the Wisconsin Uniform Trade Secrets Act.
Trade Secret Protection (Wisconsin Statute Section 134.90(1)(c))
Addresses the specific requirements for a trade secret to keep that status under Wisconsin law, including that the information be the subject of efforts reasonable under the circumstances to maintain its secrecy.
Defend Trade Secrets Act Compliance (18 U.S.C. Section 1833(b))
Includes the required notice that a person is immune from criminal or civil liability for disclosing a trade secret in confidence to a government official or attorney to report a suspected violation of law, or in a sealed court filing, as required to preserve the disclosing party's remedies under the Defend Trade Secrets Act.
Duration of Confidentiality Obligations (Wisconsin Statute Section 103.465)
Wisconsin's restrictive-covenant limits are statutory: Wisconsin Statute Section 103.465 requires that a covenant's duration, along with its other restrictions, be reasonably necessary to protect the disclosing party, and if any part of the covenant, including its duration, is found unreasonable, the entire covenant is void with no judicial narrowing available. Duration limits in a Wisconsin NDA should be set conservatively for that reason.
Exclusions from Confidential Information (Wisconsin Statute Section 134.90)
Identifies information not considered confidential under Wisconsin law, including information that is readily ascertainable by proper means, publicly available information, independently developed information, and information rightfully obtained from third parties.
Return or Destruction of Confidential Information (Wisconsin common law on contractual obligations)
Requirements for the return or certified destruction of confidential information upon termination of the agreement or upon request. No Wisconsin statute specifically governs this obligation; it is an ordinary contract term enforceable under general Wisconsin contract law.
Injunctive Relief (Wisconsin Statute Section 813.01)
Section 813.01 abolishes the common-law writ of injunction and confirms an injunction may serve as a final judgment or as a provisional remedy under Wisconsin procedure, consistent with seeking an injunction to stop an ongoing or threatened breach of a confidentiality agreement.
Governing Law and Jurisdiction (Wisconsin Statute Section 801.05)
Section 801.05 is Wisconsin's personal-jurisdiction statute, establishing the grounds on which Wisconsin courts may exercise authority over a party, such as transacting business in the state. It does not select which state's substantive law governs a contract dispute; that is a separate choice-of-law question the parties resolve by express agreement.
Electronic Signatures Compliance (Wisconsin Statute Section 137.15)
Section 137.15 provides that a record or signature may not be denied legal effect solely because it is in electronic form, and that an electronic signature satisfies any legal requirement for a signature, consistent with Wisconsin's enactment of the Uniform Electronic Transactions Act.
Federal Economic Espionage Act Compliance (18 U.S.C. Sections 1831 through 1839)
Acknowledges federal protections against economic espionage and theft of trade secrets, including criminal penalties, that may apply to confidential information shared under the agreement.
Non-Circumvention Provisions (Wisconsin Statute Section 103.465 and Wisconsin common law on unfair competition)
Prevents the recipient from circumventing the discloser to deal directly with the discloser's clients, partners, or contacts learned through confidential information. Sharpened to flag that a non-circumvention clause functions like a restraint on business dealings, so under Wisconsin's all-or-nothing rule in Wisconsin Statute Section 103.465, an overbroad non-circumvention clause risks voiding the entire covenant rather than only the clause itself; drafting it narrowly matters more in Wisconsin than in states permitting judicial reformation.
Severability (Wisconsin common law on contract interpretation)
Ensures that if any provision is found unenforceable under Wisconsin law, the remainder of the agreement remains in effect. No specific Wisconsin statute governs general contract severability; this reflects ordinary Wisconsin contract-interpretation principles, separate from the non-severable, all-or-nothing treatment Wisconsin Statute Section 103.465 applies specifically to restrictive covenants.
Intellectual Property Rights Preservation (17 U.S.C. Section 201(b) and Wisconsin Statute Section 134.90)
Clarifies that the agreement does not transfer ownership of any intellectual property rights. Sharpened to cite the specific operative subsection: 17 U.S.C. Section 201(b) sets the default rule that, for a work made for hire, the employer is considered the author and owner of the copyright absent a written agreement otherwise, which is the actual reason an NDA needs an explicit clause addressing whether it transfers any ownership interest; the general Wisconsin Statute Section 134.90 reference is retained for trade secret ownership context but is not itself a copyright-ownership statute.
Restrictive Covenant Reasonableness (Lakeside Oil Co. v. Slutsky, 8 Wis. 2d 157 (1959), applying Wisconsin Statute Section 103.465)
Lakeside Oil Co. v. Slutsky is a 1959 Wisconsin Supreme Court decision, decided two years after Section 103.465's enactment, setting out reasonableness factors (legitimate business interest, and scope in subject matter, time, and territory) for restrictive covenants. This case interprets Section 103.465 rather than standing alone as a separate common-law doctrine, so its reasonableness factors operate inside the statute's all-or-nothing framework.
Securities Laws Compliance (15 U.S.C. Section 78j(b) and 17 C.F.R. Section 240.10b-5)
Acknowledges that certain confidential information, such as information exchanged in connection with a financing or acquisition, may constitute material non-public information under federal securities laws, with appropriate restrictions on trading, if the NDA is used in that context.
Data Privacy Compliance (Wisconsin Statute Section 134.98)
Section 134.98 is Wisconsin's notice-of-unauthorized-acquisition-of-personal-information statute, requiring notice to affected individuals, and in larger breaches to consumer reporting agencies, within a set period after an entity learns of the acquisition. Addresses compliance with this Wisconsin data breach notification law when confidential information includes personal data of Wisconsin residents.
Statute of Limitations (Wisconsin Statute Section 893.43)
Section 893.43 sets a six-year limitations period for ordinary contract actions in Wisconsin, applying to a breach-of-contract claim under the NDA itself. This is distinct from the separate three-year discovery-rule deadline that Wisconsin Statute Section 893.51(2) sets specifically for trade secret misappropriation claims under Section 134.90; the two periods should not be conflated.
Integration and Modification (Wisconsin common law on contract interpretation)
States that the agreement constitutes the entire understanding between the parties regarding confidential information and can only be modified in writing, consistent with Wisconsin contract law.