Allowed above a pay floor

Non-compete law in Washington

Through June 29, 2027, a Washington noncompete is void unless the worker's annualized earnings exceed an inflation-adjusted floor ($126,858.83 for employees and $317,147.09 for independent contractors in 2026), the terms were disclosed in writing with the offer (or separate consideration was given mid-employment), and other conditions are met. Under ESHB 1155 (2026 c 149) all noncompetition covenants become void and unenforceable on June 30, 2027, regardless of when they were signed.

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From June 30, 2027, noncompetes with workers in Washington are void under a change already enacted.

All noncompetition covenants void and unenforceable regardless of signing date; thresholds (RCW 49.62.030, .040) repealed; employer must make reasonable efforts to give written notice to current and former workers by 2027-10-01 that covenants are void (RCW 49.62.020(1),(3)); applies to proceedings commenced on/after 2027-06-30 (RCW 49.62.100). The 2027 definition also treats as a noncompetition covenant any provision requiring an individual to return, repay or forfeit compensation or benefits for engaging in a lawful profession (RCW 49.62.010(3)(d)), and RCW 49.44.190 (broadcasting) is repealed (2026 c 149 s 8). Source

From July 1, 2027, noncompetes with workers in Washington are void under a change already enacted.

Laws of 2026, ch. 15 (SHB 2355, approved 2026-03-09): hiring entities may not require domestic workers to agree to noncompetes (s. 5(1)(f)). Source

Employee non-competes
Only within the statute's conditions
Pay floor
$126,858.83 a year in 2026, adjusted annually
How pay is measured
Earnings = W-2 box 1 compensation, annualized, measured at the earlier of enforcement or separation (RCW 49.62.010(1)); statutory base $100,000 (RCW 49.62.020(1)(b)); L&I adjusts each Sept. 30 by CPI-W, effective the following Jan. 1 (RCW 49.62.040)
Duration
Presumed unreasonable and unenforceable if longer than 18 months after termination; rebuttable only by clear and convincing evidence (RCW 49.62.020(2)). Ends entirely June 30, 2027.
Notice
Terms must be disclosed in writing to the prospective employee no later than initial acceptance of the offer (and, if enforceable only later due to pay changes, the employer must specifically disclose that) (RCW 49.62.020(1)(a)(i)).
Consideration
If entered after employment begins, the employer must provide independent consideration (RCW 49.62.020(1)(a)(ii)).
Pay during the restriction
If the employee is laid off, enforcement requires paying compensation equal to base salary at termination for the enforcement period, minus earnings from subsequent employment (RCW 49.62.020(1)(c)).

Exceptions and special rules

  • Sale of a business: the statute allows a non-compete given by a seller.
  • Covenant entered by a person buying/selling goodwill or an ownership interest, only if that interest is 1% or more of the business (RCW 49.62.010(4)(d); same 1% test after 2027, 49.62.010(3)(e)(iv))
  • Franchisee covenant where the franchise sale complies with RCW 19.100.020(1)
  • Nonsolicitation, confidentiality and trade-secret/invention covenants are not 'noncompetition covenants' (RCW 49.62.010(4)); after 2027 a nonsolicitation agreement must cover only employees or customers/patients/clients/prospects with whom the worker developed a direct relationship and expire within 18 months (RCW 49.62.010(4), eff. 2027-06-30)
  • After 2027: written agreement to repay out-of-pocket education expenses if it expires within 18 months, is pro rata, and releases on 'good cause' separation (RCW 49.62.010(3)(e)(vi))
  • Employers may not bar an additional job for employees earning under 2x state minimum wage (RCW 49.62.070)
  • Performer/performance-space covenants limited to 3 calendar days until 2027 (RCW 49.62.030(2))
  • Broadcasting industry employee (other than sales or management employees). Until 2027-06-30: an employee noncompetition agreement is void and unenforceable if the employee is terminated without just cause or laid off; trade-secret protection is preserved; agreements entered into before 2005-12-31 are unaffected. Repealed effective 2027-06-30 by Laws of 2026 ch. 149 s. 8 (superseded by the general ban). (RCW 49.44.190)
  • Domestic worker. From 2027-07-01 a hiring entity may not request, direct or require, as a condition of work, that a domestic worker agree to a noncompete agreement preventing work for other hiring entities or in other residences after the work ends (new chapter in Title 49 RCW). (Laws of 2026, ch. 15 (SHB 2355), s. 5(1)(f), s. 17)

Non-solicitation clauses

Not a noncompetition covenant. Current law: an agreement not to solicit the employer's employees or current customers (RCW 49.62.010(5)). From 2027-06-30 the definition narrows (direct-relationship customers/patients/clients/prospects, max 18 months) and must be construed narrowly (RCW 49.62.005, .010(4)).

Contracts naming another state's law

For Washington-based workers, provisions requiring out-of-state adjudication, denying chapter protections, or applying another state's law are void (RCW 49.62.050).

Remedies

Attorney general or aggrieved person may sue; violator pays the greater of actual damages or a $5,000 statutory penalty plus attorney's fees, expenses and costs; same if a court reforms or only partly enforces (RCW 49.62.080). After 2027 the penalty attaches to any violation of the chapter, including entering into, threatening or representing a noncompete (RCW 49.62.020(2), .080 eff. 2027-06-30).

Which agreements it covers

RCW 49.62 applies to proceedings commenced on or after 2020-01-01 regardless of when the covenant was signed (RCW 49.62.100); from 2027-06-30 all noncompetition covenants are void regardless of signing date (see the enacted change).

Recent changes

  • 2026-03-23. ESHB 1155 (Chapter 149, Laws of 2026) approved by Governor; effective June 30, 2027 (passed Senate 2026-03-05, House 2026-03-09). Source
  • 2025-09-30. L&I filed WSR 25-20-099 setting 2026 thresholds: $126,858.83 (employees), $317,147.09 (contractors), effective 2026-01-01. Source
  • 2024-03-13. SSB 5935 (Chapter 36, Laws of 2024) approved; effective June 6, 2024: added disclosure-timing and 18-month-presumption rules, layoff pay, out-of-state-forum/choice-of-law voiding, narrower definitions. Source

Primary sources

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What the statute says for these facts

Four facts. The answer leads with what the statute does at that pay, then names any change already enacted, then quotes the details with their citations.

The person who would sign

Several statutes treat contractors differently.

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