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Wyoming Enacts Law Prohibiting Most Noncompete Agreements

01 May

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Update Applicable to:Effective Date
All Covered EmployersJuly 1, 2025


What happened?

On March 19, 2025, Wyoming’s governor signed Senate File 0107 (SF0107) into law, prohibiting noncompete agreements.


Overview:

This new law broadly prohibits noncompete agreements restricting an employee’s ability to work for another employer.

  • Physicians: The law completely prohibits noncompete provisions that restrict a doctor’s ability to practice medicine after terminating employment or a professional affiliation. Physicians can disclose their continued medical practice and contact information to patients with rare disorders whom they previously treated.


However, it establishes several key exceptions:

  1. Business Sales: Noncompete clauses in contracts for purchasing and selling a business or its assets are allowed.
  1. Trade Secrets: Noncompete agreements that protect trade secrets are permitted.
  1. Relocation and Training Expenses: Employers can recover expenses for relocating, educating, and training employees, with recovery percentages decreasing based on the length of service.
  1. Executive and Management Personnel: Noncompete agreements are allowed for executive, management, and professional staff positions.
  • Effective Date: The law applies to contracts entered into on or after July 1, 2025, and does not affect existing agreements made before that date.


Source References

  • WY SF0107 – Noncompete agreements prohibited.

Need help understanding how changes to employment laws will affect your business?

Learn more about how Vensure's Wyoming PEO services can help you navigate complex employment laws and keep your business compliant.


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