Are non-competes enforceable in Wyoming?

Yes, under common law. Wyoming enforces non-competes that protect legitimate business interests, are reasonable in time and geography, are not unduly oppressive, and are supported by adequate consideration. Courts evaluate reasonableness on a case-by-case basis.

Does Wyoming have a non-compete statute?

No. Wyoming relies on common law principles and general contract law to determine non-compete enforceability. There is no specific statute governing these agreements.

How does Wyoming's small population affect non-compete enforcement?

Wyoming's small population and limited number of employers in many industries mean that non-competes can effectively prevent someone from working in their field without leaving the state. Courts may consider this outsized practical impact when evaluating whether a restriction is unduly oppressive.

Non-Compete Agreements in Wyoming: What the Law Says

The General Rule in Wyoming

Wyoming enforces non-compete agreements under a common law reasonableness standard. Wyoming does not have a specific non-compete statute, so enforceability is determined by court decisions applying general contract principles. Non-competes are treated as partial restraints on trade that must meet strict reasonableness requirements.

Wyoming's Enforceability Requirements

A non-compete is enforceable in Wyoming if:

It is reasonably necessary to protect the employer's legitimate business interests
The restrictions on time, territory, and scope are reasonable
It is not unduly oppressive to the employee
It is supported by adequate consideration
It is consistent with the public interest

The Wyoming Supreme Court has examined these factors in cases involving various industries across the state.

Legitimate Business Interests

Wyoming courts recognize trade secrets, confidential customer information, and customer relationships developed during employment as protectable interests. The employer must show a specific interest beyond merely preventing the employee from using general skills in the industry.

Duration and Geographic Scope

Duration: Wyoming courts evaluate duration based on the circumstances. One to two years is generally the reasonable range. Given Wyoming's smaller economy, longer restrictions can be particularly impactful.
Geography: Wyoming's unique demographics matter here. With a population of roughly 580,000 spread across a large geographic area, many industries have a limited number of employers in the state. A statewide restriction may effectively prevent someone from working in their field without relocating, which courts may consider unduly oppressive.

Wyoming's Small Market Considerations

Wyoming's economy is heavily concentrated in specific sectors including energy, mining, agriculture, tourism, and government. In these industries, a non-compete can have an outsized effect because there may be very few alternative employers within a reasonable distance. Courts may weigh the practical impact of a restriction more heavily in this environment.

Consideration

For new employees, the employment opportunity is sufficient. Wyoming courts evaluate whether additional consideration is needed for existing employees on a case-by-case basis.

Red Flags

Statewide restrictions in an industry with few Wyoming employers
Duration exceeding two years
No identified trade secrets or specific customer relationships
Restrictions on general industry skills common in the Wyoming market
No additional consideration for mid-employment non-competes

When to Consult a Lawyer

Consider consulting a Wyoming attorney if you are being asked to sign a non-compete, planning to leave for a competitor, or facing enforcement action. Wyoming's small market makes the practical impact of non-competes a significant factor in enforceability analysis.

This article is for informational purposes only and does not constitute legal advice. Consult a licensed attorney for guidance specific to your situation.