Wyoming just banned most non-compete agreements (Wyo. Stat. § 1-23-108): starting July 1, 2025, most agreements that restrict workers from working in competitive jobs will be void, absent some exceptions for:

  • High-Level Employees: Non-compete agreements with “executive and management personnel” and “officers and employees who constitute professional staff to executive and management personnel” will still be enforceable.  However, the statute does not define these terms, so employers should review those roles carefully.
  • Sale-of-Business: Sellers and buyers can agree to non-competes when selling or transferring a business.
  • Trade Secrets: Employers can protect trade secrets through narrowly tailored non-compete agreements that comply with the state’s definition of trade secrets, i.e. “the whole or a portion or phase of a formula, pattern, device, combination of devices or compilation of information which is for use, or is used in the operation of a business and which provides the business an advantage or an opportunity to obtain an advantage over those who do not know or use it.”  Wyo. Stat. § 6-3-501(a)(xi).
  • Recovery of Relocation, Education, and Training Expenses: Employers can contract with employees to recoup training, education, and/or relocation expenses if an employee leaves within 4 years, with varying repayment percentages based on tenure:
    • Up to 100% if employment lasted less than two yearsUp to 66% if employment was between two and three years
    • Up to 33% if employment was between three and four years

Special Rules for Physicians

Non-compete agreements for physicians that restrict practice are prohibited.  Further, doctors may notify patients with rare disorders about their new practice location and contact information.  Notably, the statute clarifies that an agreement that contains an enforceable non-compete against a physician that is otherwise permitted by law will remain enforceable.

Looking Ahead

The statute applies only prospectively to contracts signed on or after July 1, 2025.  Wyoming employers and business should consult legal counsel to update or implement restrictive covenant agreements in a timely manner.

Posted in Non-Competes and Protection of Corporate Assets
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Photo of Steven J. Pearlman Steven J. Pearlman

Steven J. Pearlman is a partner in the Labor & Employment Law Department, where he is Head of the Restrictive Covenants, Trade Secrets & Unfair Competition Group and Co-Head of the Whistleblowing & Retaliation Group.

Employment, Whistleblower, Restrictive Covenant and Trade Secret Practice.…

Steven J. Pearlman is a partner in the Labor & Employment Law Department, where he is Head of the Restrictive Covenants, Trade Secrets & Unfair Competition Group and Co-Head of the Whistleblowing & Retaliation Group.

Employment, Whistleblower, Restrictive Covenant and Trade Secret Practice. Steven’s national practice focuses on defending companies in federal and state courts and arbitration against claims of: discrimination, retaliation and harassment, including claims brought by high-level executives; whistleblower retaliation; restrictive covenant violations; theft of trade secrets; and wage-and-hour violations (including class, collective and PAGA actions).

Illustrating his versatility, Steven has successfully handled bench and jury trials in multiple jurisdictions (e.g., Illinois, California, Florida and Texas); defended one of the largest Illinois-only class actions in the history of the federal courts in Chicago; and prevailed following his oral arguments before the Seventh Circuit and state appellate courts. Steven brings his litigation experience to bear in counseling clients to minimize risk and avoid or prepare for success in litigation.

Investigations. Reporting to boards of directors, their audit committees, CEOs and in-house counsel, Steven conducts sensitive investigations and has testified in federal court. His investigations have involved complaints of sexual harassment involving C-suite officers; systemic violations of employment laws and company policies; and fraud, compliance failures and unethical conduct.

Thought Leadership and Accolades. Steven was named Lawyer of the Year for Chicago Labor & Employment Litigation in the 2023 edition of The Best Lawyers in America. He was also named as One of the Top 10 Impactful Labor & Employment Lawyers in Illinois for 2023 by Business Today. He is a Fellow of the College of Labor and Employment Lawyers. Chambers describes Steven as an “outstanding lawyer” who is “very sharp and very responsive,” a “strong advocate,” and an “expert in his field.” Chambers also reports that “He is someone who can navigate the twists and turns of litigation without difficulty. Steven is great with brief-writing, crafting arguments, and making sure the client is always happy.”

Steven was 1 of 12 individuals selected by Compliance Week as a “Top Mind.” Earlier in his career, he was 1 of 5 U.S. lawyers selected by Law360 as a “Rising Star Under 40” in the area of employment law and 1 of “40 Illinois Attorneys Under Forty to Watch” selected by Law Bulletin Publishing Company. Steven is a Burton Award Winner (U.S. Library of Congress) for “Distinguished Legal Writing.”

Steven was appointed to Law360’s Employment Editorial Advisory Board and selected as a Contributor to Forbes.com. He has appeared on Bloomberg News (television and radio) and Yahoo! Finance, and is often quoted in leading publications such as The Wall Street Journal.

The U.S. Chamber of Commerce has engaged Steven to serve as lead counsel on amicus briefs to the U.S. Supreme Court and federal circuit courts of appeal. He was appointed to serve as a Special Assistant Attorney General for the State of Illinois in employment litigation matters. He has presented with the Solicitor of the DOL, the Acting Chair of the EEOC, an EEOC Commissioner, Legal Counsel to the EEOC, and heads of the SEC, CFTC and OSHA whistleblower programs. He is also a member of the Sedona Conference, focusing on trade secret matters.

In 2024, Steven received the Excellence in Pro Bono Service Award from the United States District Court for the Northern District of Illinois and the Chicago Chapter of the Federal Bar Association.

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Photo of Sehreen Ladak Sehreen Ladak

Sehreen Ladak is an associate in the Labor & Employment Department. She represents clients in a wide range of employment matters, including state and federal litigation, arbitration, and class actions on wage and hour, discrimination, harassment, and retaliation claims. Sehreen has experience managing…

Sehreen Ladak is an associate in the Labor & Employment Department. She represents clients in a wide range of employment matters, including state and federal litigation, arbitration, and class actions on wage and hour, discrimination, harassment, and retaliation claims. Sehreen has experience managing every aspect of litigation, including taking and defending depositions, arguing discovery and dispositive motions, and leading trials and labor arbitrations.

Sehreen also advises clients on various employment issues, including wage and hour compliance, onboarding procedures, employment and separation agreements, handbooks, and workplace accommodations.

In addition, Sehreen has experience in evaluating labor and employment issues in connection with corporate transactions and partners with her colleagues in corporate and executive benefits departments to provide the highest level of service. She also regularly leads employee trainings on workplace conduct and has been published in trade journals on a variety of employment law topics.

Sehreen’s clients come from a broad spectrum of industries, such as transportation, entertainment, healthcare, financial services, and retail. She leverages her experience to provide highly efficient, yet thoughtfully bespoke solutions to address her clients’ unique needs.

During law school at USC, Sehreen was the Southern California Review of Law and Social Justice’sExecutive Submissions Editor and served as a judicial extern for an administrative judge at the E.E.O.C.

Sehreen was selected to be a Protégée for Proskauer’s Women Sponsorship Program, an initiative for high performing midlevel lawyers that champions emerging leaders. She also serves as a member of the Firm’s Associate Council and Asian Lawyer Affinity Group.

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