Washington Non-Compete Agreement Overview
Washington Restricts Non-Compete Agreements
Washington places significant restrictions on non-compete agreements. Not all employees can be subject to non-competes. Review the state-specific requirements below to determine whether your agreement is enforceable.
Washington enacted significant non-compete reform effective January 1, 2020, under RCW 49.62. The law restricts non-competes based on income thresholds: for employees, non-competes are only enforceable if the employee earns at least $116,593.18 per year (2024 threshold, adjusted annually for inflation). For independent contractors, the threshold is approximately $291,483 (2024). The maximum enforceable duration is 18 months for both employees and contractors.
Washington's law also requires that employees receive the non-compete disclosure at or before the time of hire. If the non-compete is required after employment begins, independent consideration must be provided. Notably, Washington law provides that a departing employee who is laid off is entitled to garden leave compensation during the restricted period. If the employer does not provide the required compensation, the non-compete is void. Washington courts can blue-pencil overbroad agreements, and the statute provides for recovery of actual damages, attorney's fees, and a $5,000 penalty per violation.
Restricted
Enforceability
18 months for employees, 18 months for contractors
Max duration
Yes
Blue-pencil
Income threshold must be met
Consideration
Washington Enforceability Requirements
Understanding Washington's specific rules is essential for drafting an enforceable non-compete agreement. The following provisions apply in Washington.
Key Provisions
- Income threshold for employees: ~$116,593 (2024, adjusted annually)
- Income threshold for independent contractors: ~$291,483 (2024, adjusted annually)
- Maximum 18-month duration
- Must be disclosed at or before time of hire
- Independent consideration required if imposed after employment begins
- Garden leave compensation required for laid-off employees during restricted period
- Violations: actual damages, attorney's fees, $5,000 penalty per worker
How to Draft a Non-Compete in Washington
Follow these steps to create an enforceable non-compete agreement that complies with Washington law.
Verify State Requirements
Confirm that your non-compete complies with Washington's enforceability standards, including any income thresholds, duration caps, and procedural requirements.
Define Restricted Activities Narrowly
Be specific about what activities are restricted. Broad prohibitions are more likely to be struck down or modified by Washington courts.
Set Reasonable Geographic Scope
Limit the geographic restriction to areas where your company actually operates or where the employee had client responsibility in Washington.
Provide Adequate Consideration
Ensure the employee receives adequate consideration for the non-compete restriction. In Washington, income threshold must be met.
Include Severability and Signatures
Add a severability clause and get proper signatures from both parties. In Washington, this helps protect the enforceable portions of the agreement if any provision is found overbroad.
Recent Legal Changes in Washington
Washington's non-compete reform took effect January 1, 2020. The income thresholds are adjusted annually for inflation. The law represented a major shift from Washington's prior common law approach to non-compete enforcement.
Employer Tips for Washington
Verify the employee meets the annual income threshold before requiring a non-compete. Disclose the non-compete at or before hire. Budget for garden leave compensation if the employee is later laid off. Keep duration at or under 18 months. Monitor the annual threshold adjustments.
Employee Rights in Washington
If you earn below the threshold (~$116,593 for 2024), your non-compete is void. If you were laid off and not provided garden leave compensation, the non-compete may be void. You may recover damages, attorney's fees, and a $5,000 penalty for violations. Consult an employment attorney.
Sample Washington Non-Compete Agreement
Below is a preview of our Washington-specific non-compete agreement. Your customized document will include all provisions required for enforceability in Washington.
NON-COMPETE AGREEMENT
STATE OF WASHINGTON
Covenant Not to Compete
EMPLOYER:
Company Name: [Legal Entity Name]
Address: [Washington Address]
Business Type: [Industry]
EMPLOYEE:
Name: [Full Legal Name]
Position: [Job Title]
Start Date: [Date]
NON-COMPETE TERMS
Restricted Activities: [Specific Activities]
Geographic Scope: [Area]
Duration: [Time Period] following termination
Consideration: [What Employee Receives]
Governing Law: State of Washington
Washington Non-Compete Agreement FAQ
Answers to common questions about non-compete agreements in Washington, including enforceability, duration limits, and employee rights.
Official Washington Resources
Use these official resources to verify Washington non-compete enforceability rules and access state employment law information.
Washington Department of Labor
State labor law information and employment resources
Washington Attorney General
Consumer protection and employment law guidance
FTC Non-Compete Rulemaking
Federal non-compete rule status and developments
ABA Labor and Employment Law
American Bar Association employment law resources
Related Washington Documents
Depending on your situation, you may need additional documents alongside your Washington non-compete agreement.
Washington Non-Disclosure Agreement
Protect confidential information and trade secrets
Washington Non-Solicitation Agreement
Prevent poaching of clients and employees
Washington Employment Agreement
Comprehensive employment terms and conditions
Washington Severance Agreement
Separation terms with non-compete provisions
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