As of July 1, 2025, Wyoming joins a growing list of states that bar employers from entering into non-competition agreements with most workers. The new law voids existing and new non-competes, with exceptions for the sale of a business, and certain undefined executive and management level employees. The state will continue to enforce confidential business information disclosure restrictions as well as limited employee training and education reimbursement agreements.
State laws limiting the use of non-competes began with California and other blue states known for pro-employee legislation. In recent years, however, red states such as Oklahoma and North Dakota have also passed restrictions or bans on the use of non-competes. These laws were justified by a free market-based argument that state residents should have the ability to use their skills and experience to strike the best bargain with a new employer.
With non-competes being squeezed from both sides of the political spectrum, employers should expect an increasing number of legislative and judicial restrictions on their use. Companies may want to review and strengthen policies and agreements that protect use and disclosure of their trade secrets and other business information. Even if an employee is free to leave for a competitor, they can be restrained from using proprietary information to compete with their old employer.
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