If you are planning on buying a home, condominium, townhouse, or other property, you must take note of whether any restrictive covenants will affect your ability to use your new residence.
Wyoming Agreement Creating Restrictive Covenants
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A person who makes an agreement with an employer, whether in writing or verbally, not to compete with the employer after the employment relationship has been terminated, shall be permitted to engage in the same business as that conducted by the former employer or in a similar business as that conducted by the former ...
Restrictive covenants are clauses that prevent, prohibit, restrict, or limit the actions of a person or entity named in a contract. Restrictive covenants are common in real estate transactions and apply to everything from the colors you can paint your house to how many tenants can live in a building.
Four states?California, Minnesota, North Dakota and Oklahoma?have banned noncompete agreements entirely, and many other states have enacted restrictions, such as setting a compensation threshold or requiring advance notice.
Wyoming, like most states, requires an employer seeking to enforce a noncompete agreement to establish that the ?restraint on the employee's employment options is necessary to protect the employer's legitimate business interests.?
Restrictive covenants are primarily governed by state law, and their enforceability can vary significantly from state to state. In a majority of states, restrictive covenants will be enforced, provided they are reasonable in duration and geographic scope.
Technically, the ?blue pencil? rule refers to option (b) ? i.e., just striking out the unenforceable terms ? but option (c) also is commonly referred to as ?blue penciling? the agreement. Wyoming courts used to be willing to modify overbroad restrictions and partially enforce them in modified form.
Another way to defeat a non-compete contract is to show that your employer has behaved illegally or unethically towards their clients. In general, an employer will not want these matters raised in a court case, so they may void your non-compete agreement if you have proof of these behaviors.