In March 2026, Washington enacted a law that will void most non-compete agreements with employees and independent contractors, including agreements signed before the law was passed. The law takes effect June 30, 2027.
More Than a Non-Compete
Non-compete agreements are typically much more than a promise not to compete. Many also contain non-solicitation, confidentiality, and intellectual property provisions, and each can restrict an employee after employment ends. Overly broad language can turn a non-solicitation agreement into a non-compete agreement. Post-employment restrictions can have a powerful effect on an employee's ability to find new employment.
What the New Law Reaches
The 2026 law broadens the statutory definition of a noncompetition covenant. The definition already reaches an agreement that bars a former employee from accepting or transacting business with a customer. It now also reaches any provision that requires a worker to forfeit, return, or repay compensation or benefits because the worker engaged in a lawful profession, trade, or business. A separate provision addresses covenants that restrict performers from appearing at other venues.
Exceptions
The law preserves two narrow categories. The first covers covenants given by a buyer or seller of a business's goodwill, or by a person who acquires or disposes of at least a 1% ownership interest in a business. The second covers certain covenants made by a franchisee in connection with the sale of a franchise.
Non-Solicitation Agreements
The new law continues to permit non-solicitation agreements, but it caps their length at 18 months after employment ends. An employer may still bar a former employee from soliciting coworkers to leave. A customer non-solicitation clause may reach current and prospective customers, but only those with whom the employee established or substantially developed a direct relationship through the work. A clause that bars a former employee from accepting or doing business with a customer does not qualify as a non-solicitation agreement.
What Employers May Still Protect
The Legislature preserved an employer's ability to protect confidential information, trade secrets, and inventions. Confidentiality and trade secret agreements fall outside the ban. So do written agreements to repay out-of-pocket education costs, if the obligation expires within 18 months of the employee's start date, is prorated over that period, and does not apply when the employee leaves for good cause.
The Current Law
Until June 30, 2027, Washington's existing non-compete statute continues to apply. That statute already limits when an employer may enforce a non-compete. Whether a particular agreement is enforceable depends on its terms and the facts, including the employee's earnings and how the employment ended. A lawsuit filed before June 30, 2027, and still pending on that date remains under the current statute. A lawsuit filed on or after that date falls under the new law, even if the dispute arose earlier.
Notice to Workers
By October 1, 2027, employers must make reasonable efforts to notify current and former employees and independent contractors, in writing, that any non-compete still in effect is void and unenforceable.
Enforcement
Washington's non-compete statute has carried its own remedies since it took effect in 2020. Under the current law, if a court or arbitrator determines that a noncompetition covenant violates the statute, the violator must pay the aggrieved person the greater of actual damages or a $5,000 statutory penalty, plus reasonable attorneys' fees, expenses, and costs. The statute imposes the same remedy when a court or arbitrator reforms, rewrites, modifies, or only partially enforces a covenant. The attorney general may also pursue relief on behalf of affected workers. The 2026 law retains the statutory penalty and the award of attorneys' fees.
Many disputes begin before any lawsuit, with a cease-and-desist letter to the former employee, the new employer, or both.
How It Works
Book a one-hour virtual Non-Compete Agreement Review with Matthew Ennis. Send the agreement and a short timeline before the meeting.
This page offers general information about Washington employment law. It is not legal advice, and reading it does not create an attorney-client relationship. How the law applies depends on the terms of a particular agreement and the facts of a particular case.