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Updated July 29, 2022

A Wyoming non-compete agreement is a contract that allows an employer to limit an employee from engaging in the same business. The non-compete period begins after the employee is no longer is employed. The duration can be up to 1 year and for a specific geographical area.

Legally Enforceable?

Yes , a contract for a non-compete is legal in Wyoming if it is:

  1. In writing;
  2. Part of a contract of employment;
  3. Based on reasonable consideration;
  4. Reasonable in duration and geographical limitations; and
  5. Not against public policy.

Source: CBM Geosolutions Inc. v. Gas Sensing Technology Corp. (2009)

Attorneys (prohibited)

An attorney is prohibited from entering into a non-compete or any agreement restricting their right to practice law in Wyoming.

Source: Rule 5.6

Continued Employment

If an employer requests an employee sign a non-compete while already employed, the promise of continued employment does not constitute sufficient consideration. An employee must give “separate contemporaneous consideration.”

Source: Jennifer Brown v. Best Home Health & Hospice LLC (2021)

What is “Reasonableness?”

An employer is “entitled to reasonable protection from irreparable harm” through a non-compete. Although, it cannot inflict unreasonable harm on the employee or public policy.

The court will decide to balance the following in regard to reasonableness :

  • Degree of inequality in bargaining power;
  • Risk of the employer losing customers;
  • Respective participation by the parties in securing and retaining customers;
  • the good faith of the employer;
  • Existence of sources or general knowledge pertaining to the identity of customers;
  • Nature and extent of the position held by the employee;
  • Employee’s training, health, education, and needs of their family;
  • Current employment conditions;
  • The necessity of the employee changing their calling or residence; and
  • The correspondence of the restraint with the need for protecting the legitimate interests of the employer.

Source: Philip G. Johnson & Co. v. Salmen (1992)

Maximum Term

Any period of non-compete beyond 1 year is deemed to be unreasonable. ( Hopper v. All Pet Animal Clinic, Inc. (1993) )

The court has no set parameters for territory, but 35 miles was deemed reasonable. ( Beckman v. Cox Broadcasting Corp. (1982) )

Blue Penciling

The Wyoming Supreme Court, in a recent decision on February 22, 2022, made a judgment to no longer modify otherwise unenforceable or unreasonable non-compete agreements.

Source: Hassler v. Circle C Resources (2022)