Wyoming bans most non-competition agreements
Wyoming has just banned the majority of non-compete agreements. Stat. SS 1-23-108): starting July 1, 2025, most agreements that restrict workers from working in competitive jobs will be void, absent some exceptions for:
High-Level Employees:
- Non-compete agreements with “executive and management personnel” and “officers and employees who constitute professional staff to executive and management personnel” will still be enforceable. However, the statute does not define these terms, so employers should review those roles carefully.Sale-of-Business:
- Sellers and buyers can agree to non-competes when selling or transferring a business.Trade Secrets:
- Employers can protect trade secrets through narrowly tailored non-compete agreements that comply with the state’s definition of trade secrets, i.e. Employers can protect trade secrets by drafting non-compete agreements that are tailored to the state’s definition of trade secrets. Stat. SS 6-3-501(a)(xi).Recovery of Relocation, Education, and Training Expenses:
- Employers can contract with employees to recoup training, education, and/or relocation expenses if an employee leaves within 4 years, with varying repayment percentages based on tenure:Up to 100% if employment lasted less than two yearsUp to 66% if employment was between two and three years
- Up to 33% if employment was between three and four years
- Special Rules for Physicians
Non-compete agreements for physicians that restrict practice are prohibited. Doctors may also notify patients with rare diseases about their new location and contact details. Notably, the statute clarifies that an agreement that contains an enforceable non-compete against a physician that is otherwise permitted by law will remain enforceable.
Looking Ahead
The statute applies only prospectively to contracts signed on or after July 1, 2025. Wyoming employers and businesses should consult with legal counsel in order to update or implement restrictive agreements as soon as possible.
