Freedom to work and build business. | 25LSO-0643, 1.0 |
FISCAL NOTE
No fiscal or personnel impact.
SF0107
ORIGINAL Senate ENGROSSED
File No. SF0107
ENROLLED ACT NO. 87, SENATE
SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
2025 General Session
AN ACT relating to miscellaneous contracts and actions; providing that contractual covenants not to compete are void; providing exceptions; specifying requirements for covenants not to compete for physicians; specifying applicability; and providing for an effective date.
Be It Enacted by the Legislature of the State of Wyoming:
Section 1. W.S. 1‑23‑108 is created to read:
1‑23‑108. Contractual provisions in restraint of trade generally void; exceptions; unlawful intimidation.
(a) Any covenant not to compete that restricts the right of any person to receive compensation for performance of skilled or unskilled labor shall be void. This subsection shall not apply to:
(i) Any covenant not to compete contained in a contract for the purchase and sale of a business or the assets of a business;
(ii) Any covenant not to compete to the extent the covenant provides for the protection of trade secrets as defined by W.S. 6‑3‑501(a)(xi);
(iii) Any contractual provision providing for the recovery of all or a portion of the expense of relocating, educating and training an employee as follows:
(A) Recovery of not more than one hundred percent (100%) of the expense for an employee who has served an employer for a period of less than two (2) years;
(B) Recovery of not more than sixty‑six percent (66%) of the expense for an employee who has served an employer for between two (2) and less than three (3) years;
(C) Recovery of not more than thirty‑three percent (33%) of the expense for an employee who has served an employer for between three (3) and less than four (4) years.
(iv) Executive and management personnel and officers and employees who constitute professional staff to executive and management personnel.
(b) Any covenant not to compete provision of an employment, partnership or corporate agreement between physicians that restricts the right of a physician to practice medicine as defined in W.S. 33‑26‑102(a)(xi), upon termination of the physician's employment, partnership or corporate affiliation, is void, provided that all other provisions of the agreement enforceable at law shall remain enforceable.
(c) Notwithstanding subsection (b) of this section, upon termination of the employment, partnership or corporate affiliation, or upon the voiding of an agreement not to compete specified in subsection (b) of this section, a physician may disclose his continuing practice of medicine and new professional contact information to any patient with a rare disorder as defined in accordance with the national organization for rare disorders, or a successor organization, to whom the physician was providing consultation or treatment before termination of the employment, partnership or corporate affiliation. Neither the physician nor the physician's employer shall be liable to any party to the prior agreement for damages alleged to have resulted from the disclosure or from the physician's treatment of the patient after termination of the prior agreement or employment, partnership or corporate affiliation.
Section 2.
(a) This act shall apply to contracts entered into on and after July 1, 2025.
(b) Nothing in this act shall be construed to alter, amend or impair any contract or agreement entered into before July 1, 2025.
Section 3. This act is effective July 1, 2025.
(END)
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Speaker of the House |
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| President of the Senate |
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| Governor |
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| TIME APPROVED: _________ |
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| DATE APPROVED: _________ |
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I hereby certify that this act originated in the Senate.
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Chief Clerk |
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SF0107 | Noncompete agreements prohibited. |
Sponsored By: Senator(s) Nethercott and Kolb and Representative(s) Angelos, Filer, Johnson, Lucas, Singh, Washut and Wharff
AN ACT relating to miscellaneous contracts and actions; providing that contractual covenants not to compete are void; providing exceptions; specifying requirements for covenants not to compete for physicians; specifying applicability; and providing for an effective date.
1/13/2025 Bill Number Assigned
1/13/2025 S Received for Introduction
1/17/2025 S Introduced and Referred to S01 - Judiciary
1/24/2025 S01 - Judiciary:Recommend Do Pass 4-0-1-0-0
ROLL CALL
Ayes: Senator(s) Crago, Hicks, Kolb, Olsen
Excused: Senator Crum
Ayes 4 Nays 0 Excused 1 Absent 0 Conflicts 0
1/24/2025 S Placed on General File
1/30/2025 S COW:Passed
1/31/2025 S 2nd Reading:Passed
SF0107S3001/ADOPTED
Page 2-lines 12 through 15 Delete entirely and insert:
\"(iii) Any contractual provision providing for the recovery of all or a portion of the expense of relocating, educating and training an employee as follows:
(I) Recovery of not more than one hundred percent (100%) of the expense for an employee who has served an employer for a period of less than two (2) years;
(II) Recovery of not more than sixty-six percent (66%) of the expense for an employee who has served an employer for between two (2) and less than three (3) years;
(III) Recovery of not more than thirty-three percent (33%) of the expense for an employee who has served an employer for between three (3) and less than four (4) years.\". Laursen, D
2/3/2025 S 3rd Reading:Passed 30-1-0-0-0
ROLL CALL
Ayes: Senator(s) Anderson, Barlow, Biteman, Boner, Brennan, Case, Cooper, Crago, Crum, Dockstader, Driskill, French, Gierau, Hicks, Hutchings, Jones, Kolb, Landen, Laursen, Mckeown, Nethercott, Olsen, Pappas, Pearson, Rothfuss, Salazar, Schuler, Scott, Smith, Steinmetz
Nays: Senator Ide
Ayes 30 Nays 1 Excused 0 Absent 0 Conflicts 0
2/4/2025 H Received for Introduction
2/19/2025 H Introduced and Referred to H07 - Corporations
2/27/2025 H07 - Corporations:Recommend Amend and Do Pass 9-0-0-0-0
ROLL CALL
Ayes: Representative(s) Brown, Hoeft, Johnson, Knapp, Locke, Lucas, Webb, Webber, Yin
Ayes 9 Nays 0 Excused 0 Absent 0 Conflicts 0
2/27/2025 H Placed on General File
SF0107HS001/ADOPTED (TO ENGROSSED COPY)
Page 1-above line 1 In the catch title, delete entirely and insert \"Noncompete agreements prohibited.\". Knapp, Chairman
2/28/2025 H COW:Passed
3/3/2025 H 2nd Reading:Passed
3/4/2025 H 3rd Reading:Passed 39-21-2-0-0
ROLL CALL
Ayes: Representative(s) Andrew, Angelos, Banks, Brown, L, Byron, Campbell, E, Campbell, K, Chestek, Clouston, Connolly, Davis, Eklund, Erickson, Filer, Geringer, Harshman, Jarvis, Johnson, Kelly, Knapp, Larsen, Larson, Lawley, Neiman, Nicholas, Posey, Provenza, Riggins, Sherwood, Singh, Tarver, Thayer, Washut, Wasserburger, Webb, Wharff, Williams, Wylie, Yin
Nays: Representative(s) Allemand, Bear, Brady, Bratten, Brown, G, Guggenmos, Haroldson, Heiner, Hoeft, Lien, Locke, Mccann, Ottman, Pendergraft, Rodriguez-Williams, Schmid, Smith, Strock, Styvar, Webber, Winter
Excused: Representative(s) Lucas, Storer
Ayes 39 Nays 21 Excused 2 Absent 0 Conflicts 0
3/4/2025 S Received for Concurrence
3/4/2025 S Concur:Passed 30-1-0-0-0
ROLL CALL
Ayes: Senator(s) Anderson, Barlow, Biteman, Boner, Brennan, Case, Cooper, Crago, Crum, Dockstader, Driskill, French, Gierau, Hicks, Hutchings, Jones, Kolb, Landen, Laursen, Mckeown, Nethercott, Olsen, Pappas, Pearson, Rothfuss, Salazar, Schuler, Scott, Smith, Steinmetz
Nays: Senator Ide
Ayes 30 Nays 1 Excused 0 Absent 0 Conflicts 0
3/4/2025 Assigned Number SEA No. 0087
3/4/2025 S President Signed SEA No. 0087
3/5/2025 H Speaker Signed SEA No. 0087
3/19/2025 Governor Signed SEA No. 0087
3/19/2025 Assigned Chapter Number 170
Chapter No. 170 Session Laws of Wyoming 2025
Bill No.: SF0107 Effective: 7/1/2025
LSO No.: 25LSO-0643
Enrolled Act No.: SEA No. 0087
Chapter No.: 170
Prime Sponsor: Nethercott
Catch Title: Noncompete agreements prohibited.
Has Report: No
Subject: Declaring contractual provisions in restraint of trade as void.
Summary/Major Elements:
The above summary is not an official publication of the Wyoming Legislature and is not an official statement of legislative intent. While the Legislative Service Office endeavored to provide accurate information in this summary, it should not be relied upon as a comprehensive abstract of the bill. |