As of March 2026, Washington joined California, Minnesota, North Dakota, Oklahoma, and Washington, D.C. in either banning or significantly restricting post-employment non-compete agreements for employees and independent contractors, regardless of compensation level.  Once it takes effect on June 30, 2027, the law will apply retroactively, rendering most existing non-competes in Washington void and unenforceable.  As a result, Washington employers will be required to provide written notice to current and former workers that their non-competes are not enforceable by October 1, 2027, or face statutory penalties.  

In addition to prohibiting new non-compete agreements, Washington’s new law includes the following changes:

• Voids nearly all existing employment based and independent contractor noncompetes, regardless of when they were signed;
• Prohibits employers from attempting to enforce, threatening to enforce, or representing that a worker is bound by a prohibited noncompete;
• Restricts certain non-solicitation provisions, particularly those so broad that they effectively function as non-competes (such as expansive prohibitions on doing business with any former customer); 
• Requires affirmative notice to affected workers that their noncompetes are void; and
• Exposes employers to statutory damages of at least $5,000 per violation, plus attorneys’ fees and costs.

The new law does provide for limited exceptions, including non-competes entered into in connection with a bona fide sale of a business (generally involving a meaningful ownership interest) and narrowly defined out of pocket educational expense repayment agreements.  

In light of this impending new law, employers should consider taking proactive steps now to prepare for compliance, including consulting with counsel, identifying existing non-compete agreements with current and former Washington employees, preparing to comply with the notice requirements of the new law, and shifting to alternative protections, such as confidentiality agreements and trade secret protections. 

For additional guidance on this issue, please contact the Nelson Mullins Labor & Employment Group.