01-0863 Heyde Companies Inc., d/b/a Greenbriar Rehabilitation v. Dove Healthcare LLC

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“The no-hire provision violates public policy by restricting Greenbriar therapists the right to freely sell their skills in the labor market. Without signing any agreement or even being given notice, a portion of the available labor market has been taken away. Not only are the therapists restricted from working for Dove, but with thirty-three other health care facilities that have contracted with Greenbriar. Thus, current and former Greenbriar therapists are restricted from being employed by these facilities, unless Greenbriar gives consent and unless the facilities are willing to pay the fee. …

“While, as indicated above, the no-hire provision is not a restrictive covenant on its face, we conclude that the provision violates public policy as expressed in Wis. Stat. ‘ 103.465. The provision purports to only restrict Dove. However, its effect limits the employment opportunities of Greenbriar therapists without their knowledge or consent. The therapists’ right to freely contract is hindered when seeking employment with employers that have entered into no-hire agreements with Greenbriar. …

“We conclude that an employee’s individual right and freedom to contract may not be restricted by a contract between two employers unless the employee is aware of and consents to the contract. Because the no-hire provision restricted the employment opportunities of Greenbriar employees without their knowledge or consent, we conclude that it is unenforceable.”

Judgment reversed.

Recommended for publication in the official reports.

Dist III, Eau Claire County, Wahl, J., Peterson, J.

Attorneys:

For Appellant: Carol S. Dittmar, Eau Claire; Teresa E. O’Halloran, Eau Claire

For Respondent: John F. Maloney, Milwaukee; Robert K. Bultman, Milwaukee; Jennine T. Sonntag, Milwaukee