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Monday, April 21, 2025

Non-Compete Employment Clauses Will Soon Be Illegal In Wyoming - Kgab

Wyoming Governor Mark Gordon recently signed a bill into law that will make non-compete clauses illegal under Wyoming law.

According to the Federal Trade Commission, ''A non-compete clause is a contractual term between an employer and a worker that blocks the worker from working for a competing employer, or starting a competing business, typically within a certain geographic area and period of time after the worker’s employment ends.''

The FTC say that as of 2023, about one in five American workers were bound by some kind of non-compete clause.

Bill To Ban The Practice Was Sponsored By Senator Tara Nethercott

Senate File 107 was sponsored by Laramie County Republican Senator Tara Nethercott [R-Laramie County].

She says of the legislation

"With this legislation, we are not just protecting workers—we are also strengthening our economy by ensuring businesses can attract and retain top talent without artificial barriers," Senator Nethercott added. "Wyoming is open for business, and this bill sends a clear message that we support innovation and economic freedom."

Supporters of non-compete clauses argue that they protect businesses by keeping valuable employees and preventing rivals from getting inside information that workers may take with them if they are hired by a competitor.

The FTC proposed banning the clauses through federal labor law in 2023, but as of yet that has not happened.

The Wyoming law takes effect on July 1.



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