Washington State has long taken a skeptical view of noncompetition agreements—and that skepticism is now on the brink of becoming a complete ban.
Washington State has long taken a skeptical view of noncompetition agreements—and that skepticism is now on the brink of becoming a complete ban. Both chambers of the Legislature have approved Engrossed Substitute House Bill (ESHB) 1155, and the bill now awaits Governor Bob Ferguson’s signature, which is widely expected.
If signed, the law will dramatically reshape Washington’s restrictive covenant landscape. It would also position Washington State within a growing national trend to prohibit or sharply limit noncompetition agreements. California has long been the most prominent example, banning employment noncompetes for decades. North Dakota, Oklahoma, and Minnesota have also enacted complete bans. Several other states have adopted significant restrictions on the use of noncompetes, including Colorado, Illinois, Maine, Maryland, Oregon, Rhode Island, and Virginia.
Here’s what employers need to know.
Legislative Intent to Ban Noncompetition Agreements Entirely
ESHB 1155 begins by revisiting the Legislature’s earlier efforts to regulate restrictive covenants. The bill acknowledges that while Washington took “a critical step forward” in 2019 by banning noncompetition covenants for lower‑wage earners, “this did not go far enough.” The new findings section declares the Legislature’s intent “to ban noncompetition covenants for all...
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