Task force forwards noncompete repeal draft to judiciary after debate

Anna Johnson, LSO staff attorney, presented bill draft 27 LSO 77, "Prohibition on noncompete agreements amendments," explaining section 1 would repeal the 2025 grandfather clause so the prohibition would apply regardless of when a noncompete was entered and section 2 sets an effective date of July 1, 2027. Johnson read the staff comment that removing the grandfather clause could be argued to impair pre-existing contracts under the Contracts Clause of the U.S. Constitution.

A sponsor (S6) said the change responds to testimony that noncompetes have restricted workforce mobility, citing a Wyoming Supreme Court case in which a CNA lost work because of a noncompete. The sponsor argued court rulings and federal rulemaking efforts (FTC) show the trend toward limiting noncompetes and said he was comfortable advancing the draft. Representative Pendergraft (S3) voiced concern about legislative authority to intervene in private contracts and was the sole recorded 'no' vote in the roll call.

The task force conducted a roll-call vote on 27 LSO 77 and voted to forward the draft to the joint judiciary committee: 8 ayes, 1 no, 2 excused. The chair directed staff to transmit the draft and staff comment to the joint judiciary committee for review.