Wyoming to Ban Most Noncompete Agreements Effective July 1, 2025 - HR ALERTS

Wyoming to Ban Most Noncompete Agreements Effective July 1, 2025

Effective: July 1, 2025

Effective July 1, 2025, Wyoming will become the fifth state to broadly prohibit the use of noncompete agreements with employees.

Under the new law, any agreement that restricts a person’s right to receive compensation for performing skilled or unskilled labor is void, with limited exceptions:

• Sale or purchase of a business

• Protection of trade secrets

• Repayment of relocation, education, or training expenses

• Executive and management personnel, including their professional staff

Additionally, noncompete clauses for physicians are expressly void. Physicians may continue to practice upon separation and are permitted to notify patients with rare disorders of their continued practice and new contact details.

Key Takeaway:

The law applies to contracts entered into on or after July 1, 2025.

Broader Trend:

Wyoming joins California, Minnesota, North Dakota, and Oklahoma in largely banning noncompetes, while many other states continue to adopt restrictions on their use.

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