Takeaways

• Washington will effectively ban all employment non-compete agreements as of 06.30.27, with only limited exceptions, and regardless of when they were signed.
• Employers must provide notices to current and former employees by 10.01.27 that covered non-competition covenants are void and unenforceable.
• Confidentiality, certain non-solicitation and limited education-repayment provisions remain permitted if they are narrowly drafted.

• House Bill 1155

Article

Washington State expanded its restrictions on non-competition agreements to effectively ban all non-compete agreements and covenants in employment. The changes go into effect June 30, 2027.

Employers must notify current and former employees by Oct. 1, 2027, of non-competition covenants that are no longer enforceable. Employers should begin preparing now to address this significant change.

Current Limits on Non-Competition Agreements

Washington State first imposed limits on employers’ use of restrictive covenants in 2019. In 2024, the legislature updated those limits. Under current statutes, employers may enter into non-competition agreements only with certain employees and independent contractors (those with earnings over specific thresholds, currently in 2026 $126,858.83 for employees and $317,147.09 for independent contractors).

Still, non-competition covenants are void and unenforceable unless disclosed in writing to a prospective employee no later than the initial oral or written acceptance of an offer of...

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