Effective July 1, 2025, Wyoming will become the fifth state to ban the use of noncompete agreements.
The new law provides that any noncompete agreement that restricts a person’s right to receive compensation for performing skilled or unskilled labor is void. Exceptions are allowed for:
- Noncompete clauses contained in a contract for purchasing or selling a business;
- Noncompete agreements that provide for the protection of trade secrets;
- Contractual provisions that allow for the recovery from an employee of relocation, education and training expenses; and
- Noncompete clauses that apply to executive and management personnel and the officers and employees who make up the professional staff of executive and management personnel.
The law also specifically provides that noncompete clauses that restrict the right of a physician to practice medicine upon the termination of the physician’s employment, partnership or corporate affiliation are void. It further clarifies that physicians may disclose their continuing practice of medicine and new professional contact information to any patient with a rare disorder who the physician had been treating.
The provisions apply to contracts entered into on and after July 1, 2025.
Wyoming joins California, Minnesota, North Dakota and Oklahoma in generally barring noncompete agreements with employees. Other states impose an array of laws restricting the use of noncompete agreements.
