Wyoming Voids Non-Competes, with Limited Exceptions

What happened?

On March 19, 2025, Governor Mark Gordon signed Senate File 107 into law, significantly limiting the enforceability of noncompete covenants in employment contracts. This legislation applies to contracts entered into on or after July 1, 2025.

Overview:

The Act voids most contractual covenants not to compete, with specific exceptions and requirements for physicians.

Summary:

• General Rule: Noncompete covenants restricting compensation for labor are void.

• Exceptions:
  
  • Covenants in contracts for the sale of a business.
  • Covenants protecting trade secrets.
  • Provisions for recovering relocation, education, and training expenses based on employment duration.
  • Covenants for executive and management personnel.

• Physicians: Noncompete covenants in physician agreements are void, but other enforceable provisions remain valid. Physicians can disclose their practice and contact information to patients with rare disorders after termination without liability.

• Applicability: Applies to contracts entered into on or after July 1, 2025. Does not affect contracts made before this date (not retroactive).

Additional Information:

• Recommended Employer Action: Given this significant legislative shift, employers must:
  
  • Review and Revise: Audit existing employment agreement templates and policies to ensure compliance with the new law before July 2025.
  • Identify Exceptions: Evaluate roles within your company that may fall under permitted exceptions and update contract language accordingly.
  • Collaborate with Employment Counsel: Seek strategic advice from experienced employment counsel to mitigate risks, ensure full compliance, and protect your company’s interests.

Source References

• WY SF0107 – Noncompete agreements prohibited.

This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.