Washington non-compete law

Pay figure in the law

$126,858.83 a year

Separate rules for professions

None found in the statutes we read

Statutes and official texts quoted

RCW 49.62.020(1) (effective until June 30, 2027); RCW 49.62.020(1) (effective June 30, 2027); 2026 c 149 s 9 (note following RCW 49.62.005); RCW 49.62.020(3) (effective June 30, 2027); RCW 49.62.020(1)(a) (effective until June 30, 2027); RCW 49.62.020(1)(b) (effective until June 30, 2027); RCW 49.62.010(1) (effective until June 30, 2027); RCW 49.62.040; Wash. Dep't of Labor & Industries, Non-Compete Agreements page; Wash. Dep't of Labor & Industries, Non-Compete Agreements page; RCW 49.62.030; RCW 49.62.020(1)(c) (effective until June 30, 2027); RCW 49.62.020(2) (effective until June 30, 2027); RCW 49.62.010(4) (effective until June 30, 2027); RCW 49.62.050; RCW 49.62.080(2); RCW 49.62.070(1)

Is a non-compete allowed?

Until June 30, 2027, Washington law lists conditions under which a noncompetition covenant is void and unenforceable (including disclosure, consideration, earnings threshold and layoff conditions).

“(1) A noncompetition covenant is void and unenforceable:”
RCW 49.62.020(1) (effective until June 30, 2027)

Beginning June 30, 2027, all noncompetition covenants in Washington are void and unenforceable, regardless of when they were signed.

“Beginning on June 30, 2027, all noncompetition covenants are void and unenforceable regardless of when the parties entered into the noncompetition covenant.”
RCW 49.62.020(1) (effective June 30, 2027)

Pay thresholds

Until June 30, 2027, a covenant is void unless the employee's annualized earnings from the enforcing party exceed $100,000 per year (the base amount, adjusted annually).

“Unless the employee's earnings from the party seeking enforcement, when annualized, exceed one hundred thousand dollars per year. This dollar amount must be adjusted annually in accordance with RCW 49.62.040;”
RCW 49.62.020(1)(b) (effective until June 30, 2027)

Earnings means W-2 box one compensation over the prior year (annualized), calculated as of the earlier of when enforcement is sought or separation; for independent contractors it means 1099-MISC payments.

“"Earnings" means the compensation reflected on box one of the employee's United States internal revenue service form W-2 that is paid to an employee over the prior year, or portion thereof for which the employee was employed, annualized and calculated as of the earlier of the date enforcement of the noncompetition covenant is sought or the date of separation from employment.”
RCW 49.62.010(1) (effective until June 30, 2027)

The Department of Labor and Industries adjusts the dollar thresholds each September 30 using CPI-W; the adjusted amount takes effect the following January 1.

“Annually on September 30th the department of labor and industries must adjust the dollar amounts specified in this section by calculating to the nearest cent using the consumer price index for urban wage earners and clerical workers, CPI-W, or a successor index, for the twelve months prior to each September 1st as calculated by the United States department of labor.”
RCW 49.62.040

Washington L&I's threshold table lists employee thresholds of $123,394.17 for 2025 and $126,858.83 for 2026.

“$123,394.17 $126,858.83”
Wash. Dep't of Labor & Industries, Non-Compete Agreements page

Washington L&I's threshold table lists independent contractor thresholds of $308,485.43 for 2025 and $317,147.09 for 2026.

“$308,485.43 $317,147.09”
Wash. Dep't of Labor & Industries, Non-Compete Agreements page; RCW 49.62.030

Notice and signing

Until June 30, 2027, a noncompetition covenant is void unless the employer discloses its terms in writing to the prospective employee no later than the employee's initial acceptance of the job offer.

“Unless the employer discloses the terms of the covenant in writing to the prospective employee no later than the time of the initial oral or written acceptance of the offer of employment”
RCW 49.62.020(1) (effective until June 30, 2027)

By October 1, 2027, employers must make reasonable efforts to notify current and former employees and independent contractors whose noncompetition covenants are still in effect that the covenants are void.

“By October 1, 2027, an employer must make reasonable efforts to provide written notice to all current and former employees and independent contractors whose noncompetition covenant is still within its effective time period, that their noncompetition covenant is void and unenforceable.”
RCW 49.62.020(3) (effective June 30, 2027)

If a covenant is signed after employment begins, it is void unless the employer provides independent consideration.

“If the covenant is entered into after the commencement of employment, unless the employer provides independent consideration for the covenant;”
RCW 49.62.020(1)(a) (effective until June 30, 2027)

Who is covered

An employer may not bar an employee earning less than twice the state minimum hourly wage from having an additional job or self-employment, subject to safety and scheduling exceptions.

“an employer may not restrict, restrain, or prohibit an employee earning less than twice the applicable state minimum hourly wage from having an additional job, supplementing their income by working for another employer, working as an independent contractor, or being self-employed.”
RCW 49.62.070(1)

Exceptions

Noncompetition covenant does not include nonsolicitation agreements, confidentiality agreements, trade secret or invention covenants, certain sale-of-business covenants (1% or more ownership interest), or qualifying franchisee covenants.

“A "noncompetition covenant" does not include: (a) A nonsolicitation agreement; (b) a confidentiality agreement; (c) a covenant prohibiting use or disclosure of trade secrets or inventions;”
RCW 49.62.010(4) (effective until June 30, 2027)

Limits on length and area

If the employee is laid off, the covenant is void unless enforcement includes pay equal to the employee's base salary for the enforcement period, minus earnings from later employment.

“If the employee is terminated as the result of a layoff, unless enforcement of the noncompetition covenant includes compensation equivalent to the employee's base salary at the time of termination for the period of enforcement minus compensation earned through subsequent employment during the period of enforcement.”
RCW 49.62.020(1)(c) (effective until June 30, 2027)

A covenant lasting more than 18 months after termination is presumed unreasonable and unenforceable, unless the enforcing party proves by clear and convincing evidence that a longer period is necessary.

“A court or arbitrator must presume that any noncompetition covenant with a duration exceeding eighteen months after termination of employment is unreasonable and unenforceable.”
RCW 49.62.020(2) (effective until June 30, 2027)

If it is challenged

If a court or arbitrator finds a violation, the violator must pay the aggrieved person the greater of actual damages or a $5,000 statutory penalty, plus reasonable attorneys' fees, expenses and costs; the attorney general may also pursue relief.

“the violator must pay the aggrieved person the greater of his or her actual damages or a statutory penalty of five thousand dollars, plus reasonable attorneys' fees, expenses, and costs incurred in the proceeding.”
RCW 49.62.080(2)

Which state’s law and court

For a Washington-based employee or independent contractor, a covenant provision is void if it requires adjudication outside Washington, deprives them of the chapter's protections, or applies another jurisdiction's law.

“If the covenant requires the employee or independent contractor to adjudicate a noncompetition covenant outside of this state;”
RCW 49.62.050

When the rules took effect

The 2026 act banning noncompetition covenants takes effect June 30, 2027.

“Effective date—2026 c 149: "This act takes effect June 30, 2027."”
2026 c 149 s 9 (note following RCW 49.62.005)

Federal rules

On September 5, 2025, the FTC moved to dismiss its appeals in Ryan, LLC v. FTC and Properties of the Villages v. FTC and to accede to vacatur of the Non-Compete Clause Rule. FTC press release, Sept. 5, 2025

The FTC's final rule removes the Non-Compete Rule (16 CFR part 910) from the Code of Federal Regulations. 91 Fed. Reg. (Feb. 12, 2026), FR Doc. 2026-02866

Before you sign, or before you assume you are bound

1. Find every restrictive clause: non-compete, non-solicitation, no-hire and confidentiality are separate promises with separate rules.
2. Note how long each lasts and what area or customers it covers.
3. Check which state’s law the agreement picks and where disputes must be heard.
4. Compare your pay and your job with the Washington rules above.

Check your state with the non-compete checker.

Common questions

Are non-competes enforceable in Washington?

Until June 30, 2027, Washington law lists conditions under which a noncompetition covenant is void and unenforceable (including disclosure, consideration, earnings threshold and layoff conditions). (RCW 49.62.020(1) (effective until June 30, 2027)).

Is there a salary threshold for non-competes in Washington?

Washington L&I's threshold table lists employee thresholds of $123,394.17 for 2025 and $126,858.83 for 2026. (Wash. Dep't of Labor & Industries, Non-Compete Agreements page).