| Wyoming, with the introduction of Wyo. Stat. §1-23-108, banned most non-compete agreements for contracts signed on or after July 1, 2025, but with several meaningful exceptions. If you do business in Wyoming, here’s what you need to know: |
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Key Exceptions to the Ban
While the majority of non-compete agreements will be unenforceable, Wyoming’s new statute carves out several exceptions:
- High-Level Employees: Non-compete agreements can still apply to “executive and management personnel” and their professional staff. However, the law does not define these terms, leaving employers (and the courts) to assess which roles fall under this category.
- Sale-of-Business Agreements: When a business is sold or transferred, the buyer and seller can negotiate non-compete clauses. This provision ensures that buyers can safeguard the value of their investment.
- Trade Secrets: A non-compete agreement will be valid to the “extent the covenant provides for the protection of trade secrets as defined by W.S. §6-3-501(a)(xi).”
- Recovery of Expenses: Employers may require employees to repay training, education, or relocation costs if they leave within four years of their employment (a so-called “TRAP” agreement). Repayment percentages are tiered as follows:
- Up to 100% if employment lasts less than two years.
- Up to 66% for employment between two and three years.
- Up to 33% for employment between three and four years.
Special Protections for Physicians
Non-compete agreements with physicians are prohibited outright. Additionally, doctors with patients who have rare disorders can inform them of their new practice location and contact details, ensuring continuity of care, with no fear of liability to the physician or any new employer.
What This Means for Wyoming Employers
The new statute applies prospectively to agreements signed on or after July 1, 2025. Employers should work with legal counsel prior to July 1, 2025 to ensure compliance, especially when defining roles for high-level employees, safeguarding trade secrets, or structuring repayment agreements for employee training, education and relocation costs.
