On 23 March 2026, Washington Governor Bob Ferguson signed Engrossed Substitute House Bill 1155 (ESHB 1155), which renders nearly all noncompete agreements void and unenforceable for Washington-based workers. This noncompete ban goes into effect on 30 June 2027.
While Washington law already prohibits noncompete agreements with employees earning below US$126,858.83 in 2026 and independent contractors earning less than US$317,147.090 in 2026, ESHB 1155 would ban noncompete agreements for all employees and independent contractors alike, with limited exceptions. The freshly inked ban aligns with the growing nationwide trend to proscribe or at least drastically limit noncompete agreements. For example, California, North Dakota, Oklahoma, and Minnesota have enacted near-complete bans, while Colorado, Illinois, Maine, Maryland, Oregon, Rhode Island, and Virginia have adopted significant restrictions on the use of noncompete provisions in the employment context.
Below is a summary of the most significant aspects of the new-noncompete ban that employers need to know:
ESHB 1155 considerably expands the definition of “noncompetition covenant” to include:
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