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I'm not an expert on Appleton, but I imagine the opportunities for a highly skilled position like that is pretty limited. So if you are cutting off their opportunity to work somewhere else, you're essentially forcing them to work at the other hospital.
So yes, it's not suing the actual employees, but the purpose of the lawsuit is the same. To limit the free market and prevent employees from leaving.
Wisconsin is an at-will state with lots of folks who preach free market. They've been awfully quiet about this one.
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