Washington state has joined a growing list of states banning almost all noncompetes between employers and employees and independent contractors.

As we previously reported, the Washington State legislature introduced HB1155 earlier this year. On March 23, 2026, Governor Bob Ferguson signed into law Engrossed Substitute House Bill 1155 (the “Act”) that effectively bans almost all noncompetes for Washington-based employees and independent contractors.

Effective Date and Retroactive Effect

The Act will become effective June 30, 2027 and will apply retroactively. Therefore, on June 30, 2027, “all noncompetition covenants are void and unenforceable regardless of when the parties entered into the noncompetition covenant.” However, legal proceedings that were already filed before June 30, 2027 will be governed by the prior version of the law.

What Agreements Will Be Prohibited?

Under the Act, all noncompetition covenants between and employer and employee or independent contractor will be prohibited. Noncompetition covenants include oral or written agreements that:

• prohibit or restrain an employee or independent contractor from engaging in a lawful profession, trade or business;
• directly or indirectly prohibit the acceptance or transaction of business with a customer;
• contain a forfeiture-for-competition provision that requires or threatens that an individual must return, repay, or forfeit any right as a consequence of the individual engaging in a lawful profession, trade or...

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