Heyde Co., Inc. v. Dove Healthcare,
L.L.C., No. 01-0863 (Wis. App. Oct. 23, 2001)

A nursing home operator contracted with a physician therapist company to provide physical therapists in nursing homes. The physical therapists were employees of the physical therapist company. The agreement contained a "no hire" clause specifying that the nursing home operator could not hire any of the physical therapists who worked for the physical therapist company for one year after contract termination unless written consent was obtained and a fee paid equaling 50% of the contract fee. The nursing home operator terminated the agreement and then hired one current employee and three former employees of the physical therapy company.

The Court of Appeals of Wisconsin concluded that Wisconsin public policy favored employee movability and that the no-hire provision was an unenforceable restraint of trade. The court was persuaded in part by the fact that the physical therapists were unaware of the no-hire provision. The court found that the no-hire provision unfairly hindered the physical therapists' ability to work in their field because of contracts between parties outside the employees' control.