Washington state has enacted Engrossed Substitute House Bill 1155 (ESHB 1155), which prohibits almost all post-employment noncompete agreements, effective June 30, 2027.
Washington state has enacted Engrossed Substitute House Bill 1155 (ESHB 1155), which prohibits almost all post-employment noncompete agreements, effective June 30, 2027. The legislation makes most existing and future noncompete agreements void and unenforceable, regardless whether the status of the worker is employee or independent contractor, their salary level, the industry at issue, or the duration of the agreement.
Previously, Washington law banned noncompete agreements only for higher-earning workers; in 2026, the prohibition applied only to employees making about $126,859 per year and independent contractors making about $317,147 per year. The prior law also enacted strict guidelines for noncompete agreements, limiting most to one year. Now, employers must provide written notice to current and former workers no later than October 1, 2027, informing them that noncompete agreements are void and unenforceable. The blanket prohibition applies not just to traditional noncompete agreements, but to any contract provision that “threatens, demands, requires or otherwise effectuates” repayment, forfeiture, or loss of benefits for working in a profession or business.
One exception to the new state law is for noncompete agreements executed in the context of a business sale or the sale of its goodwill. However,...
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