Wyoming Restricts Use of Non-Compete Agreements

On March 19, 2025, the Wyoming Governor, Mark Gordon, signed SB 107 which will significantly change employer’s use of non-compete agreements in Wyoming. Effective July 1, 2025, non-compete agreements that restrict an employee’s ability to earn a living (skilled or unskilled labor) are no longer enforceable. This applies to agreements entered into on and after July 1, 2025 and does not affect agreements entered into prior to that date. 

Exceptions to the Law

The law does carve out some exceptions to this blanket prohibition as follows. 

• Sale of Business – The law does not apply to non-compete provisions which are included in a contract for the purchase and sale of a business or its assets. 

• Trade Secrets – Covenants not to compete remain valid if the covenant provides for the protection of trade secrets as they are defined under Wyo. Stat. § 6-3-501(a)(xi). This statute defines a trade secret as “the whole or portion or phase of a formula, pattern, device, combination of devices or compilation of information which is for use, or is used in the operation of a business and which provides the business an advantage or an opportunity to obtain an advantage over those who do not know or use it.” 

• Relocation and Training Expenses – The law does not apply to contracts which provides for recovery of relocation, education, and training expenses based on the following criteria: 

• 100% recovery for an employee who has worked for less than 2 years; 

• 66% recovery for an employee who has worked at least 2 years but less than 3 years; 

• 33% recovery for an employee who has worked for at least 3 years but less than 4 years. 

• Executive and Management Personnel – The law does not apply to “executive and management personnel and officers and employees who constitute professional staff to executive and management personnel.” 

In addition to the above exceptions, there are also specific provisions that apply to physicians. Non-compete provisions in an employment, partnership, or corporate agreement that would restrict a physician’s ability to practice medicine after their employment termination will be void, although all other provisions of the agreement will remain enforceable.  

Next Steps for Employers

Employers previously had wide flexibility when drafting non-compete agreements in Wyoming. SB 107 is a substantial shift in this area of employment law. Employers utilizing non-compete agreements in Wyoming should carefully review existing agreements and templates to ensure they comply with the changes that go into effect on July 1, 2025.