Wyoming Prohibits Noncompete Agreements
Beginning July 1, 2025, Wyoming will prohibit new noncompete agreements. Agreements entered into before that date will not be affected. While the ban will apply broadly, exceptions will be allowed for noncompete agreements that are any of the following:
Contained in a contract for the sale of a business or its assets
Designed to protect trade secrets
Applicable to certain executive and management employees
Additionally, the law specifies that contracts that allow employers to recover relocation, education, or training expenses will not be prohibited, as long as the expense amounts fall within specified limits. These types of contracts, known as repayment agreements, are sometimes associated with noncompete agreements because they can restrain an employee's job mobility.
Action Items
Review your practices with respect to noncompete agreements and ensure any continued use falls within one of the exceptions.