Wyoming voided most noncompetes, and it reaches association staff
Wyoming voided most noncompetes, and it reaches association staff
2026-09-19 · Wyoming · Legislation
What happened. Wyoming made noncompete covenants void as to anyone whose right to be paid for labour they restrict, for contracts entered into on or after July 1, 2025. An association that employs on-site staff, and a management company that contracts with associations, both operate inside the new rule.
The act
SF0107, Senate Enrolled Act No. 87, became chapter 170 of the 2025 session laws. Governor Gordon signed it on March 19, 2025. Sponsors were Senator Kolb and Representatives Angelos, Filer, Johnson, Lucas, Singh, Washut and Wharff. The Senate passed it 30–1 and the House 39–21. It creates W.S. § 1-23-108.1
The rule and its exceptions
“(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%) … for an employee who has served an employer for a period of less than two (2) years; (B) … sixty-six percent (66%) … between two (2) and less than three (3) years; (C) … thirty-three percent (33%) … 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.”
The act applies to contracts entered into on and after July 1, 2025, and does not “alter, amend or impair any contract or agreement entered into before July 1, 2025.”
Who inside a Wyoming association this reaches
Wyoming associations employ people directly more often than the size of the state suggests — a resort or ranch community with a gate, a clubhouse, a pool, a water system and miles of private road is an employer. The categories that sit plainly inside subsection (a) and outside the exceptions are the ones doing manual or skilled work:
- Maintenance and groundskeeping staff
- Snow removal and road crew
- Pool, clubhouse and front-desk staff
- Water or wastewater system operators employed by the association
A noncompete against any of them, in a contract signed on or after July 1, 2025, is void under the statute’s own words.
The exception that is a question, not a line
Subsection (a)(iv) exempts “[e]xecutive and management personnel and officers and employees who constitute professional staff to executive and management personnel.” Whether a given community manager falls inside it is a category question the statute does not resolve, and it will turn on the actual scope of the role rather than the job title on the contract. This column does not characterise where any particular manager sits.
What is clear is that the exception is drafted around management, not around employment by a management company. A management company’s own field staff — the maintenance technician who services eight properties, the porter, the seasonal groundskeeper — are performing skilled or unskilled labour whatever the company’s org chart says.
The management-contract side
The provision most likely to be affected in a Wyoming management agreement is not a classic noncompete at all but a no-hire or no-solicit clause — the term barring an association from employing the manager’s on-site staff directly at the end of the engagement. Whether such a clause “restricts the right of any person to receive compensation for performance of skilled or unskilled labor” within the meaning of W.S. § 1-23-108(a) is a construction question on the face of the statute. Wyoming has no appellate decision on it.
What survives
Three things the act leaves standing are worth naming, because they cover most of what an association actually wants protected:
- Trade secret protection, under exception (ii), by reference to the definition at W.S. § 6-3-501(a)(xi).
- Confidentiality obligations, which are not covenants not to compete and are untouched by the section.
- Training and relocation cost recovery, on the sliding scale in exception (iii) — 100% under two years, 66% from two to three, 33% from three to four. For an association that pays for a water operator’s certification, that is the mechanism the statute leaves available.
The dating rule is the operative detail
Contracts entered into before July 1, 2025 are expressly unaffected. Contracts entered into on or after that date are subject to the section. A renewal, a rewritten agreement or a new hire after the effective date is a contract entered into after the effective date. Wyoming requires no community association manager licence and has no state agency with jurisdiction over association management, so this is one of the few pieces of Wyoming law that reaches the employment side of association operations at all.
Related Wyoming HOA Topics
Stay on top of Wyoming HOA law
Every week: new Wyoming legislation, court rulings, and regulatory developments affecting condos, planned communities, and property managers. Free.
No spam. Unsubscribe anytime.