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Non Compete in Wyoming — What 6 Law Firms Say

By Steven Obiajulu

Updated 2026-04-04 · Based on analysis from 6 leading law firms

Executive Summary

Wyoming significantly restricted the enforceability of non-compete agreements following the enactment of Senate File 107, signed by Governor Mark Gordon on March 19, 2025 (https://web.wyoleg.gov/LsoService/api/BillInformation?searchValue=SF0107). The new law, effective July 1, 2025, voids most non-compete covenants, with specific exceptions for executive and management personnel, the protection of trade secrets, and the sale of a business.

Non-compete agreements remain legal in Wyoming but are subject to significant new statutory limitations following the enactment of Senate File 107. The law generally voids most non-compete covenants, though it provides specific exceptions for certain executive and management personnel, agreements designed to protect legitimate trade secrets, and covenants in connection with the sale of a business. Ogletree Deakins notes that the legislation applies prospectively to contracts entered into on or after July 1, 2025, and imposes strict requirements on the scope of these agreements (Wyoming Enacts Legislation Limiting Noncompete Agreements). Littler Mendelson confirms that the Act's language is broad enough to make most non-compete covenants void regardless of a worker's status as an employee or independent contractor (Wyoming Bans Non-Compete Covenants with Some Exceptions). Faegre Drinker further notes that the prohibition applies to agreements with any "person," banning noncompete agreements with both employees and independent contractors (Wyoming Enacts New Law Restricting Noncompete Agreements).

What happens if a non-compete agreement is found to be overbroad in Wyoming?

Wyoming courts may void non-compliant agreements in their entirety rather than modifying or 'blue-penciling' them to make them enforceable. This creates a risk where an overly broad covenant results in the total loss of the restrictive protection. Ogletree Deakins highlights that the current judicial trend suggests a low tolerance for agreements that fail to meet the new statutory standards, and that employers should ensure permissible agreements have reasonable geographic and temporal limitations (Wyoming Enacts Legislation Limiting Noncompete Agreements). Littler Mendelson notes that the Wyoming Supreme Court prohibited courts from blue-penciling noncompete provisions in a 2022 decision, meaning courts will not revise an overbroad agreement to make it enforceable (Wyoming Bans Non-Compete Covenants with Some Exceptions). Fisher Phillips adds that the statute leaves several questions unanswered, including whether other common restrictive covenants such as customer non-solicitation or employee non-solicitation covenants will be treated as "covenants not to compete" under the new law (Employers in Wyoming Face New Restrictions on Non-Compete Agreements).

Does the FTC's federal non-compete rule apply in Wyoming?

The FTC's proposed blanket ban on non-compete agreements was abandoned in favor of a targeted, case-by-case enforcement strategy. On September 5, 2025, the FTC formally withdrew its appeals and acceded to the vacatur of the rule. Consequently, employers in Wyoming are primarily governed by the state's new statutory framework rather than a federal regulatory prohibition. Foley & Lardner confirms that the FTC has pivoted from a broad, rule-based prohibition to targeted enforcement (Five Takeaways From the FTC's Decision to Abandon the Noncompete Rule). Vinson & Elkins notes that FTC Chair Ferguson stated the rule's "illegality was patently obvious" but that the FTC would "continue to enforce the antitrust laws aggressively against noncompete agreements" on a case-by-case basis under Section 5 of the FTC Act (FTC Abandons Blanket Non-Compete Ban, Shifts to Targeted Enforcement). Ogletree Deakins observes that Wyoming's legislation is part of a broader national trend, noting that the 2024 FTC rule that sought to ban nearly all noncompete agreements was struck down in court (Wyoming Enacts Legislation Limiting Noncompete Agreements).

Can I still protect trade secrets without a non-compete?

Wyoming law allows for the protection of trade secrets, and the new non-compete statute explicitly incorporates the definition of trade secrets found in W.S. 6-3-501(a)(xi) (https://wyoleg.gov/statutes/compress/title06.pdfPDF). Littler Mendelson observes that this statutory definition is relatively broad, providing a mechanism for employers to protect proprietary information even where a general non-compete might be unenforceable, though how expansive the exception will be in practice remains to be seen (Wyoming Bans Non-Compete Covenants with Some Exceptions). Faegre Drinker confirms that the trade secret exception is one of four narrow statutory exceptions under the new law (Wyoming Enacts New Law Restricting Noncompete Agreements). Ogletree Deakins notes that employers may want to evaluate whether their agreements are specifically structured to protect trade secrets as defined under state law, as this exception remains a viable path (Wyoming Enacts Legislation Limiting Noncompete Agreements).

Firm Consensus

All four Wyoming-specific firm analyses (Ogletree Deakins, Littler Mendelson, Fisher Phillips, and Faegre Drinker) agree that the legal landscape in Wyoming has shifted toward strict, state-specific regulation following the 2025 legislation. There is a consensus that employers face increased risk of having agreements voided entirely if they are not narrowly tailored to legitimate business interests or specific statutory exceptions. All firms note the law applies prospectively to contracts entered into on or after July 1, 2025.

Differences in Firm Treatment

Firms diverge on the interpretation of the new law's ambiguities, particularly regarding the definitions of 'executive' and 'management' personnel. Fisher Phillips notes that while Colorado case law might be referenced for interpretive guidance, Wyoming courts are not bound by it, leading to uncertainty in how the statute will be applied in practice (Employers in Wyoming Face New Restrictions on Non-Compete Agreements). Faegre Drinker similarly highlights that the statute lacks clear definitions for terms like 'executive and management personnel,' creating uncertainty regarding the scope of the professional staff exemption (Wyoming Enacts New Law Restricting Noncompete Agreements). Littler Mendelson raises a separate question about how expansive the trade secret exception will be in practice (Wyoming Bans Non-Compete Covenants with Some Exceptions).

Recent Developments

References

This page aggregates publicly available law firm commentary for informational purposes. It is not legal advice. The analysis reflects the views of the cited firms at the time of publication. Consult qualified legal counsel for your specific situation.