Effective July 1, 2025, Wyoming will largely ban non-compete agreements through the passage of Enrolled Act No. 87 (SF0107). Under the new statute (W.S. § 1-23-108), most non-compete agreements entered into on or after this date will be considered void and unenforceable, with limited exceptions.
Key Provisions of the Law
The law prohibits agreements that restrict an individual’s ability to earn compensation through skilled or unskilled labor. However, several exceptions remain for the following:
- Sales of Business: Non-competes remain enforceable in connection with the sale of a business or its assets.
- Trade Secret Protection: Employers may enforce non-compete clauses designed to protect defined trade secrets.
- Executive-Level Positions: Non-competes are still valid for executive or managerial personnel and the professional staff who directly support them.
- Training Reimbursement: Employers can also enter into contracts that seek repayment of relocation, education, or training expenses on a graduated scale (between 100 percent and 33 percent) if an employee leaves within a defined period (between two to four years).
Next Steps for Employers
Employers with operations in Wyoming should begin preparing now to ensure compliance:
- Review and Revise Agreements: Audit existing contracts and update templates to remove or adjust non-compete provisions that will no longer be enforceable.
- Use Alternative Protections: Focus on enforceable contract terms such as non-solicitation, confidentiality, and IP protection clauses.
- Add Reimbursement Clauses: Include compliant reimbursement terms for roles involving significant relocation or training investments.
- Educate Internal Stakeholders: Train HR, legal, and management teams on the new legal requirements to ensure consistency across employment documents.
- Track Legal Updates: Monitor any subsequent guidance or amendments that may impact interpretation or enforcement.
