https://www.seattletimes.com/business/local-business/new-washington-law-bans-noncompete-agreements/

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New Washington law bans noncompete agreements

March 27, 2026 at 10:00 am Updated March 27, 2026 at 10:00 am
Listen to article
By
Megan Ulu-Lani Boyanton  
Seattle Times business reporter

Washington Gov. Bob Ferguson recently signed a law that makes
noncompete agreements illegal statewide.

The measure, spearheaded by state Rep. Liz Berry (D-Seattle), outlaws
noncompete agreements: in general, contracts that let employers
forbid workers from creating or joining a competing business for a
set amount of time.

Industries that utilize noncompete agreements, otherwise known as
restrictive covenants, include technology, health care, finance and
sales. The law, signed Monday, takes effect on June 30, 2027.

"Washington state is standing up for workers," Berry said in a news
release published Wednesday. "If you want to take a new job with
better pay or leave to start your own company, your old
job shouldn't be able to block you from pursuing your dream."

On the effective date, restrictive covenants will be unenforceable
for all Washington-based workers and businesses, according to the new
law. New noncompete agreements are illegal. Employers must notify
current and former workers in writing about any voided noncompete
agreements by Oct. 1, 2027.

Related

    More
   
    The measure furthers a state law from 2019 that limited
    noncompete agreements to employees who earned more than about
    $126,859 and contractors who made more than around $317,147,
    according to the 2026 earnings thresholds posted by the
    Washington State Department of Labor and Industries.

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    The state's latest approach echoes a decision made in 2024 under
    former President Joe Biden's administration to prohibit
    noncompete agreements across the U.S. However, the Federal Trade
    Commission rolled back the ban this year.

    "After the Non-Compete Rule was issued, several employers and
    trade groups filed lawsuits challenging it," the agency wrote in
    a rule published in February. "Federal district courts in three
    jurisdictions issued opinions in lawsuits challenging the
    Non-Compete Rule."

    In Washington, the new injunction also clarifies nonsolicitation
    agreements, which bar former workers from courting clients and
    co-workers at their past workplaces.

    Nonsolicitation agreements are not the same as noncompete
    agreements, and they are not prohibited. "However, the definition
    of (the) nonsolicitation agreement must be narrowly construed,"
    per the law.

    Locally, attorneys are providing guidance to workplaces about the
    new measure.

    "Washington now joins a small but growing number of states that
    have declared non-competition covenants void and unenforceable,"
    Alex Cates, senior counsel at law firm Holland and Knight, wrote
    in an advisory Tuesday. "This is a major change."

    States with full noncompete bans include California, North
    Dakota, Minnesota and Oklahoma, per the Economic Innovation
    Group, a bipartisan public policy organization.

    Megan Ulu-Lani Boyanton: 206-652-6373 or 
    mboyanton@seattletimes.com. Megan Ulu-Lani Boyanton is a business
    reporter at The Seattle Times.

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