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Previous Updates
Noncompete Agreements
WY passed a new law narrowing circumstances of entering in a noncompete agreement. The law prohibits any non-compete agreement that limits a person's right to earn compensation for performing skilled or unskilled labor, unless it meets one of the four statutory exceptions:
- Any covenant not to compete contained in a contract for the purchase and sale of a business or the assets of a business.
- Any covenant not to compete to the extent the covenant provides for the protection of trade secrets as defined by W.S. 6‑3‑501(a)(xi).
- Any contractual provision providing for the recovery of all or a portion of the expense of relocating, educating and training an employee as follows:
- Recovery of not more than 100% of the expense for an employee who has served an employer for a period of less than two years.
- Recovery of not more than 66% of the expense for an employee who has served an employer for between two and less than three years.
- Recovery of not more than 33% of the expense for an employee who has served an employer for between three and less than four years.
- Any covenant not to compete with executive and management personnel and officers and employees who constitute professional staff to executive and management personnel. The statute does not define the terms “executive and personnel management” or “professional staff,” so which specific employees would qualify for this exemption is an open question.
Employers should inspect their agreements and work with their legal counsel for compliance. Effective July 1, 2025 and applies to contracts on and after the effective date.
