Washington Non-Compete Agreements: New Restrictions Protect Workers

Quick Answer: Washington significantly restricts non-compete agreements under laws enacted in 2020. Non-competes are unenforceable against employees earning less than $123,394.17/year (2026 threshold). Even for higher earners, non-competes must be disclosed before hire, limited to 18 months, and meet reasonableness requirements. Independent contractors face a higher threshold ($308,485.43). These restrictions make Washington one of the most worker-friendly states for non-compete law.

If you signed a non-compete, it may not be enforceable. Understanding Washington's restrictions can protect your career mobility.

Washington's Non-Compete Law Overview

The 2020 Reform

Washington enacted major non-compete restrictions effective January 1, 2020 (RCW 49.62). The law:

• Bans non-competes for most workers
• Requires advance disclosure
• Limits duration
• Creates penalties for violations
• Gives workers more power to challenge restrictions

What Is a Non-Compete Agreement?

A non-compete (also called covenant not to compete) restricts your ability to:

• Work for a competitor after leaving your job
• Start a competing business
• Solicit the employer's customers or employees

Common provisions:

• Geographic restrictions (within certain miles/regions)
• Time restrictions (for X months/years after employment)
• Industry restrictions (cannot work in same field)

Who Can Have an Enforceable Non-Compete?

Employee Salary Threshold

2026 threshold: $123,394.17/year

Non-competes are void and unenforceable against employees earning below this threshold.

What counts toward the threshold:

• Annual base salary or hourly equivalent
• Commissions and bonuses (if guaranteed/expected)
• The employee's actual earnings, not just base pay

Adjusted annually: The threshold increases each year based on state inflation data.

Independent Contractor Threshold

2026 threshold: $308,485.43/year

Independent contractors earning below this amount cannot be bound by non-competes.

What This Means in Practice

If you earn less than the threshold:

• Your non-compete is void
• You can work for competitors immediately
• Your former employer cannot enforce it
• You may recover penalties if they try to enforce

If you earn above the threshold:

• Non-compete may be enforceable
• But must still meet other requirements (disclosure, duration, reasonableness)

Disclosure Requirements

Pre-Hire Disclosure

Non-competes must be disclosed to the employee in writing:

• No later than the earlier of:
  • The time of the initial offer of employment, OR
  • Before the employee accepts the job

If not disclosed before hiring: The non-compete is void.

Mid-Employment Non-Competes

If an employer wants to add a non-compete after you're already working:

• Must provide independent consideration (something new of value beyond continued employment)
• Must disclose the terms in writing
• Must give you time to review before signing

What counts as consideration:

• Promotion
• Significant raise
• Bonus specifically for signing
• Additional benefits

NOT sufficient consideration:

• Continued employment alone
• Threat of termination if you don't sign

Duration Limits

Maximum Enforceable Period

18 months is the presumptive maximum for employee non-competes in Washington.

Non-competes longer than 18 months are presumptively unreasonable (though an employer could try to justify longer in exceptional circumstances).

Practical Impact

Most Washington non-competes are now written for 12-18 months. Older agreements with longer terms may be unenforceable or reduced to 18 months.

When Non-Competes Are Void

Washington law makes non-competes automatically void in these situations:

1. Below Salary Threshold

Employees earning less than $123,394.17/year (2026) cannot be bound.

2. No Pre-Hire Disclosure

If you weren't told about the non-compete before accepting the job offer.

3. Laid Off or Terminated Without Cause

Non-competes are void if you're:

• Laid off
• Terminated without cause (not fired for misconduct)

Exception: Enforceable if employer pays you during the non-compete period at your prior salary.

4. Independent Contractor Below Threshold

Contractors earning less than $308,485.43/year (2026).

5. Against Public Policy

Non-competes that prevent you from earning a living in your profession may be void as against public policy, regardless of other factors.

Specific Worker Categories

Healthcare Workers - Banned

Non-competes are completely prohibited for:

• Physicians
• Advance practice registered nurses
• Physician assistants
• Other healthcare practitioners (in patient care)

Exception: Narrowly tailored non-solicitation of patients may be allowed.

Broadcast Employees - Banned

Non-competes are prohibited for radio and TV broadcast employees.

Low-Wage Workers - Banned

Any worker below the threshold cannot be bound, regardless of industry.

What If Your Employer Tries to Enforce?

Your Rights

If your employer attempts to enforce a void non-compete:

You may recover:

• Actual damages (lost wages from not taking a job, legal costs)
• Statutory penalty: $5,000 or actual damages, whichever is greater
• Attorney's fees

Steps to Take

1. Review the agreement against Washington requirements
2. Check your earnings against the threshold
3. Determine if properly disclosed before you were hired
4. Consult an employment attorney before taking action
5. Document any threats or enforcement attempts

If Sued for Violation

If your former employer sues you:

• Raise Washington's non-compete restrictions as a defense
• Your attorney can move to dismiss if the agreement is void
• Counter-claim for penalties if applicable

Related Restrictive Covenants

Non-Solicitation Agreements

Agreements not to solicit the employer's customers or employees may still be enforceable—they're different from non-competes.

Key distinction:

• Non-compete: Prohibits working for competitors
• Non-solicitation: Prohibits contacting specific customers or employees

Non-solicitation agreements have fewer statutory restrictions but must still be reasonable.

Confidentiality/NDA Agreements

Confidentiality agreements protecting trade secrets are generally enforceable regardless of salary level.

You can still be prohibited from:

• Disclosing trade secrets
• Using proprietary information
• Sharing confidential customer data

But: NDAs cannot be used as de facto non-competes to prevent you from working.

Non-Disclosure of Wages - Prohibited

Washington law specifically protects your right to discuss wages. Any agreement prohibiting wage discussions is void.

Evaluating Your Non-Compete

Questions to Ask

1. When did you sign it?

   • Before 2020: May be evaluated under old (more employer-friendly) law
   • After 2020: New restrictions apply

2. When were you told about it?

   • Before job offer: May be valid
   • After starting work: Likely void

3. What do you earn?

   • Below $123,394.17: Void
   • Above: Further analysis needed

4. How long is the restriction?

   • Over 18 months: Presumptively unreasonable

5. How did your employment end?

   • Laid off/terminated without cause: Likely void unless employer pays you

Red Flags for Unenforceable Non-Competes

• Signed during employment without new consideration
• No disclosure before accepting job
• Your salary is below the threshold
• Restriction is overly broad (national scope for local business)
• Duration longer than 18 months
• You were laid off or terminated without cause

Common Scenarios

Scenario 1: The Tech Worker

Facts: Software developer earning $85,000/year signs non-compete at hiring.

Analysis: Below $123,394.17 threshold = non-compete is void. Developer can immediately work for competitor.

Scenario 2: The Sales Executive

Facts: Sales VP earning $175,000/year has 2-year non-compete. Laid off during downsizing.

Analysis: Above threshold, but terminated without cause = non-compete is void (unless employer continues paying salary during non-compete period).

Scenario 3: The Healthcare Provider

Facts: Physician assistant signs non-compete with medical practice.

Analysis: Healthcare practitioners cannot be bound by non-competes = void regardless of salary.

Scenario 4: Mid-Employment Non-Compete

Facts: After 2 years on the job, employer asks you to sign a non-compete. You receive no raise or bonus.

Analysis: No independent consideration beyond continued employment = void.

Scenario 5: Properly Executed Non-Compete

Facts: Marketing director earning $150,000/year signs 12-month non-compete disclosed before accepting job. Later resigns voluntarily.

Analysis: Above threshold, properly disclosed, reasonable duration, voluntary departure = may be enforceable. But still must be reasonable in scope.

Negotiating Non-Competes

Before Signing

If you're asked to sign a non-compete:

1. Ask for time to review (never sign immediately)
2. Calculate your earnings against the threshold
3. Negotiate scope (narrower geographic area, shorter duration)
4. Request garden leave (employer pays you during restriction)
5. Consider walking away if terms are unreasonable

What to Negotiate

• Duration: Push for 6-12 months vs. 18
• Geography: Limit to specific markets where you actually worked
• Scope: Limit to direct competitors, not entire industry
• Garden leave: Get paid during the restriction period
• Carve-outs: Exclude specific opportunities or employers

Red Lines

Consider refusing if:

• Below salary threshold (it's void anyway)
• Not disclosed before job offer
• No consideration for mid-employment agreement
• Terms are unreasonably broad

What Employers Cannot Do

Under Washington law, employers cannot:

• Require non-competes for employees below the threshold
• Enforce non-competes not disclosed before hiring
• Enforce against laid-off employees (without paying them)
• Use out-of-state law to evade Washington restrictions
• Threaten enforcement of void agreements

Forum selection/choice of law: Washington law applies to employees who work primarily in Washington, regardless of what the contract says.

Frequently Asked Questions

Does the law apply to non-competes signed before 2020?

The law applies to enforcement actions after January 1, 2020, regardless of when signed. However, courts may evaluate older agreements somewhat differently.

Can my employer make me sign a non-compete as a condition of employment?

Yes, but only if properly disclosed before you accept the offer, you earn above the threshold, and terms are reasonable.

What if I signed a non-compete but earn below the threshold?

The non-compete is void. You don't have to follow it. If your employer tries to enforce it, you may recover penalties.

What if my employer is based in another state?

Washington law applies to employees who work primarily in Washington, regardless of employer location or contract's choice-of-law clause.

Can I be fired for refusing to sign a non-compete?

If you're a current employee and refuse to sign without proper consideration, Washington's restrictions support your refusal. However, at-will employees can be terminated for various reasons. Consult an attorney.

Do non-competes survive if I'm fired for cause?

Potentially yes, if other requirements are met. "Terminated without cause" protection only applies to layoffs and no-fault terminations.

Related Topics

• Washington Employment Contracts
• Washington Non-Solicitation Agreements
• Washington Confidentiality Agreements
• Washington At-Will Employment

Take Action

If you're subject to a non-compete:

• Review it against Washington's requirements
• Calculate your earnings against the threshold
• Document how and when it was presented
• Consult an employment attorney before making career moves

Washington's non-compete restrictions are among the strongest in the nation. Don't let an unenforceable agreement limit your career.

Legal Disclaimer

This article provides general information about Washington non-compete law and is not legal advice. Non-compete enforceability depends on specific facts and circumstances. For advice about your particular agreement, consult a qualified employment attorney.

For official information:

• Washington State Legislature: https://apps.leg.wa.gov/rcw/default.aspx?cite=49.62
• Washington Attorney General: https://www.atg.wa.gov/