On March 19, 2025, Wyoming Governor Mark Gordon signed into law Senate File 107, now Enrolled Act No. 87 (the “Act”), which makes any covenant not to compete that restricts the right of any person to receive compensation for performance of labor void. The law will apply to contracts entered into on or after the effective date of July 1, 2025. While not retroactive, the Act contains language broad enough to make most non-compete covenants with workers void regardless of a worker’s status as an employee or an independent contractor, or the type of agreement the covenant may be found in. In addition to covering non-compete provisions, the Act also contains a restriction on training repayment agreements and expense relocation agreements that do not satisfy statutory limitations. Finally, the Act contains special rules specifically for physicians, excluding them from some of the exceptions listed below.
Importantly, the law applies prospectively only, and explicitly states that “[n]othing in this act shall be construed to alter, amend or impair any contract” entered into prior to July 1, 2025. Employers that wish to put protective covenants in place in Wyoming have some time to consider their options but will need to make decisions quickly. In addition, employers in Wyoming will need to...
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