Wyoming Noncompete Agreement: What's Included and Enforceability

Is a Non-Compete Agreement Enforceable in Wyoming?

In Wyoming, non-compete agreements, which restrict employees from competing with former employers in the same industry, are permitted. To be legally enforceable, a non-compete agreement in Wyoming must meet the following requirements:

1. It must be in writing
2. It must be part of an employment contract
3. The non-compete must be supported by adequate consideration
4. The duration and geographical restrictions must be reasonable
5. The terms of the agreement cannot violate public policy

How Long Does a Wyoming Non-Compete Agreement Last?

The Supreme Court of Wyoming has determined that any non-compete agreement that lasts for more than one year is unreasonable. The one year period will begin when the employment relationship between the two parties is terminated.

How Do You Get Around a Non-Compete Agreement in Wyoming?

Non-compete agreements in Wyoming must be reasonable meaning that the employer is entitled to reasonable protection from harm to their business while not imposing unreasonable restrictions on an employee. To get around a non-compete agreement, an employee must prove that the contract is overly broad or imposes an undue hardship on their ability to earn a living.

When determining reasonableness, courts will consider some of the following factors:

• Inequality in bargaining power between the employer and employee
• Employer’s good faith
• Nature of the position the employee held
• Information the employee had access to
• Current employment conditions
• Whether the restrictions protect a legitimate business interest
• Risk of the employer losing customers or revenue

What Voids a Wyoming Non-Compete Agreement?

All non-compete agreements must be supported by consideration otherwise the contract will be void. When an employee signs a non-compete agreement as part of an employment contract, then continuing employment is sufficient consideration.

If an employee is presented with a non-compete agreement after employment has begun, then additional consideration like a promotion, raise in pay, or additional benefits will be necessary. Without additional consideration, the contract will be void.