Here in Washington, noncompete agreements are heavily restricted under RCW 49.62, which took effect in 2020. The law limits their enforceability by requiring that employees earn at least $120,559 annually (as of 2024, adjusted yearly for inflation) and independent contractors make at least $301,398. Additionally, employers must disclose the agreement before hiring, and noncompete agreements lasting longer than 18 months are presumed unreasonable. The law also bans noncompete agreements for laid-off employees unless compensation continues during the restricted period. Violations can result in penalties, including damages and attorneys' fees. Given these strict limitations, businesses in Washington should carefully review their contracts to ensure compliance.

If you have questions about how noncompete agreements work in Washington, give us a call at 253.858.5434 to set up an appointment today.