Ban starts 2027
Washington Non-Compete Law (2026): Void from 30 June 2027
Washington runs a two-stage system. Until June 30, 2027 a non-compete is void unless the worker's annualized earnings clear $126,858.83, or $317,147.09 for an independent contractor, and even then the employer must have disclosed the terms by the moment of acceptance, must pay laid-off workers through the restricted period, and faces a presumption that anything past eighteen months is too long. On June 30, 2027 that structure disappears and every non-competition covenant becomes void, including ones signed years earlier. Employers then have until October 1, 2027 to tell affected current and former workers in writing that the covenant no longer binds them.
The rule
How Washington treats non-compete agreements
The retroactive reach is the provision employers most often misread. HB 1155 does not grandfather anything; a covenant signed in 2019 and one signed in 2027 both stop working on the same day. What survives the ban is a defined list — sale-of-business covenants, franchise agreements, confidentiality and trade secret terms, educational-expense repayment agreements meeting statutory conditions, and non-solicitation clauses capped at eighteen months where the employee built the customer relationship directly, with the definition of protected customers modestly widened to include prospective ones. Forfeiture-for-competition clauses do not survive: HB 1155 treats them as non-competes. RCW 49.62.050 also nullifies any attempt to litigate a Washington worker's covenant under another state's law or in another state's courts.
If you are an employer
Stop writing new Washington non-competes now, because anything you sign today dies on June 30, 2027, and build the October 1, 2027 notice mailing into your compliance calendar; the covenants worth investing in are narrowly drawn non-solicitation, confidentiality and trade secret terms, which survive the ban.
If you are a worker
If you earn under $126,858.83 in 2026 your Washington non-compete is already void, and if you earn more it becomes void on June 30, 2027 no matter when you signed it — with a $5,000 statutory penalty plus attorney fees available if your employer tries to enforce it.
| Classification | Compensation-threshold regime today; total statutory ban from June 30, 2027 |
|---|---|
| Pay threshold | For 2026, annualized earnings must exceed $126,858.83 for an employee and $317,147.09 for an independent contractor. Labor and Industries resets both every January using the consumer price index. On June 30, 2027 the thresholds cease to matter, because the ban stops depending on pay. |
| Maximum term | No hard cap. A covenant running more than eighteen months past termination is presumed unreasonable and unenforceable, and the employer must rebut that presumption by clear and convincing evidence. The eighteen-month figure survives after June 30, 2027 in the narrowed context of educational-expense repayment agreements. |
| Notice or consideration | Yes, and the timing is strict. The covenant's terms must be disclosed in writing no later than the worker's initial oral or written acceptance of the offer. A covenant imposed later requires independent consideration. Separately, a worker laid off may be held to the covenant only if the employer pays base salary for the enforcement period, less any compensation earned elsewhere. |
| Primary statute | Wash. Rev. Code ch. 49.62 (Noncompetition Act), amended by SB 5935 (2024) and HB 1155 (2026) |
A covenant signed in another state
Washington voids out-of-state choice-of-law and forum-selection clauses for workers who primarily live and work there, under RCW 49.62.050. Signing in a friendlier jurisdiction does not rescue a covenant once Washington law applies.
Detail
What has changed, and what is still moving
Legislation 2024–2026
SB 5935, effective June 6, 2024, tightened definitions and closed the choice-of-law escape route. HB 1155, signed March 23, 2026, then rewrote the endgame: beginning June 30, 2027, all non-competition covenants are void and unenforceable regardless of when the parties entered into them, and enforcing, attempting to enforce, or threatening to enforce one becomes an express statutory violation.
Bills to watch
No significant restrictive bills pending. HB 1155 is enacted law; what remains is the fourteen-month implementation runway before June 30, 2027 and the October 1, 2027 notice deadline.
Leading cases
Statutory text has largely displaced the older doctrine, but the pre-2020 framework still governs legacy disputes. Perry v. Moran (Wash. 1987) supplies the traditional three-part reasonableness inquiry, and Labriola v. Pollard Group (Wash. 2004) holds that continued at-will employment alone is not independent consideration for a covenant signed after hire — a rule RCW 49.62.020 subsequently codified. Reported decisions construing the 2020 Act remain sparse, and the 2027 ban will make most of them moot.
If you have one in hand
What can make a non-compete unenforceable in Washington
- You earn below the threshold. For 2026, annualized earnings must exceed $126,858.83 for an employee and $317,147.09 for an independent contractor. Labor and Industries resets both every January using the consumer price index. On June 30, 2027 the thresholds cease to…
- The employer skipped a required step. Yes, and the timing is strict. The covenant's terms must be disclosed in writing no later than the worker's initial oral or written acceptance of the offer. A covenant imposed later requires independent consideration. Separately, a worker…
- The scope is wider than the interest behind it. A restriction that reaches beyond the customers, trade secrets or goodwill the employer can actually point to is the most common reason a covenant fails in Washington.
- The clock. On 30 June 2027 every Washington non-compete becomes void, including agreements signed years earlier.
Whether any of these applies turns on the wording of your own agreement, your role and the case law your court follows. This page maps the statutory landscape; it does not replace advice on a specific contract.
FAQ
Washington non-compete questions
Are non-compete agreements enforceable in Washington?
Washington runs a two-stage system. Until June 30, 2027 a non-compete is void unless the worker's annualized earnings clear $126,858.83, or $317,147.09 for an independent contractor, and even then the employer must have disclosed the terms by the moment of acceptance, must pay laid-off workers through the restricted period, and faces a presumption that anything past eighteen months is too long. On June 30, 2027 that structure disappears and every non-competition covenant becomes void, including ones signed years earlier. Employers then have until October 1, 2027 to tell affected current and former workers in writing that the covenant no longer binds them.
How long can a non-compete last in Washington?
No hard cap. A covenant running more than eighteen months past termination is presumed unreasonable and unenforceable, and the employer must rebut that presumption by clear and convincing evidence. The eighteen-month figure survives after June 30, 2027 in the narrowed context of educational-expense repayment agreements.
Is there a minimum salary for non-competes in Washington?
For 2026, annualized earnings must exceed $126,858.83 for an employee and $317,147.09 for an independent contractor. Labor and Industries resets both every January using the consumer price index. On June 30, 2027 the thresholds cease to matter, because the ban stops depending on pay.
What notice or consideration does Washington require?
Yes, and the timing is strict. The covenant's terms must be disclosed in writing no later than the worker's initial oral or written acceptance of the offer. A covenant imposed later requires independent consideration. Separately, a worker laid off may be held to the covenant only if the employer pays base salary for the enforcement period, less any compensation earned elsewhere.
Can an out-of-state employer enforce a non-compete against a Washington worker?
Often not. Washington voids out-of-state choice-of-law and forum-selection clauses for workers who primarily live and work there, under RCW 49.62.050. A covenant signed elsewhere can still fail once Washington law applies.
Sources
How this entry was checked
- Primary source. Wash. Rev. Code ch. 49.62 (Noncompetition Act), amended by SB 5935 (2024) and HB 1155 (2026) — the statutory text itself.
- Secondary sources consulted. RCW 49.62.020 and ch. 49.62 (Washington Legislature), Washington L&I non-compete threshold page, WSR 25-20-099, 2026 enforceability thresholds, Washington Attorney General 2026 non-compete FAQ, HB 1155 (2026), SB 5935 (2024), Faegre Drinker April 2026 alert, Jackson Lewis alert, Ogletree analysis of SB 5935, Seyfarth Q1 2026 update.
Check it against a third party
None of these is ours. If a figure here matters to a decision, verify it:
- Federal Trade Commission — non-compete hub
- Economic Innovation Group — State Noncompete Law Tracker
- Fair Competition Law (Beck Reed Riden) — 50-state legislation tracker
- GAO-23-103785 — Noncompete Agreements (May 2023)
This page is general legal information published by Jurizmo and is not legal advice, does not create an attorney-client relationship, and may not reflect amendments enacted after the review date above. Consult a licensed attorney in the relevant state before acting on any agreement.