By Robert G. Brody and Fintan S. Lalor
Wyoming recently enacted legislation restricting the use of most non-compete agreements signed on or after July 1, 2025. Significantly, the law applies prospectively only, but Wyoming employers will need to act fast to ensure any new employment contract complies with the state’s new law.
Exceptions to the Ban
The new law voids the majority of non-compete agreements in Wyoming signed on or after July 1, 2025, subject to the following limited exceptions:
- High-Level Employees: Non-competes are enforceable for “executive and management personnel” and “officers and employees who constitute professional staff to executive and management personnel.” Notably, the law does not provide a definition of these terms, creating uncertainty as to what exactly qualifies under the exception.
- Sale-of-Business Exception: Non-competes are still enforceable when negotiated pursuant to a sale or transfer of a business.
- Trade Secrets Exception: Non-competes are still enforceable to the “extent the covenant provides for the protection of trade secrets” as defined under state law. However, this appears to be a trade secret protection issue, NOT a non-compete issue!
- Recovery of Training, Relocation, or Education Expenses: Employers may contract with their employees to repay training, relocation, or education expenses if the employees leave the company within four years of their employment. The law allows up to 100% to be repaid if the employment lasted less than two years, 66% if the employment lasted between two and three years, and 33% if the employment lasted between three and four years.
Additional Protections for Physicians
The law also bans non-compete provisions for physicians. Specifically, the law provides that non-compete covenants in “an employment, partnership or corporate agreement between physicians that restricts the right of a physician to practice medicine… upon termination of the physician’s employment, partnership or corporate affiliation” is void and unenforceable. The law even allows physicians to inform patients with certain rare disorders about their new practice’s contact information and location.
What now?
These newly enacted changes add to a growing list of state-level legislative activity aiming to significantly restrict the enforceability of non-compete agreements. Employers should revisit their restrictive covenant policies and contact competent legal counsel to ensure compliance across all relevant jurisdictions.
Brody and Associates regularly advises management on complying with the latest local, state and federal employment laws. If we can be of assistance in this area, please contact us at info@brodyandassociates.com or 203.454.0560.
