Are non-compete agreements enforceable in Washington?
1. Baseline Rule. RCW 49.62 (effective January 1, 2020) heavily regulates employee non-competes. A covenant is void and unenforceable unless every statutory requirement is met.
2. Reasonableness Factors. Courts apply traditional reasonableness analysis only after the statutory hurdles are met. The legitimate interest must be a trade secret, confidential information, or customer goodwill; the geographic and temporal scope must be no broader than necessary.
3. Consideration. For new hires, the offer of employment is sufficient if the covenant is disclosed in writing no later than acceptance. For mid-employment covenants, the employer must provide independent consideration — typically a bonus, raise, or equity.
4. Wage Thresholds. RCW 49.62.020 voids non-competes for any employee whose earnings are less than $123,394.17/year in 2025 (indexed annually by L&I). Independent contractor threshold is $308,485.43/year in 2025. The threshold rises with the Washington CPI.
5. Duration Cap. RCW 49.62.020(2) imposes a presumptive 18-month maximum duration; longer requires clear and convincing evidence of necessity.
6. Layoff Compensation. If the employee is terminated without cause or laid off, the covenant is enforceable only if the employer pays the employee's base salary at the time of termination minus any compensation earned during the restricted period.
7. Blue Pencil / Reformation. Section 49.62.080 imposes statutory penalties on employers that try to enforce void covenants — even reformation triggers $5,000 (or actual damages, whichever is greater) plus attorneys' fees. This deters overreach.
8. Industry Carve-Outs. Broadcasters protected by separate statute. Lawyers barred by Wash. RPC 5.6. Moonlighting protections: RCW 49.62.070 bars restrictions on outside work for employees earning below twice the state minimum wage.
9. FTC Rule. Enjoined nationwide by Ryan LLC v. FTC (E.D. Tex. Aug. 2024); on appeal.
10. Choice of Law. RCW 49.62.050 voids any choice-of-law or forum-selection clause that deprives a Washington-based worker of the statute's protections.
This is legal information, not legal advice.
- Your earnings are near the indexed Washington threshold
- Employer enforced the covenant after laying you off without offering severance
- Employer used a Delaware or Florida choice-of-law clause to avoid RCW 49.62
- RCW 49.62 (Noncompetition Covenants Act)
- RCW 49.62.020 (wage threshold)
- RCW 49.62.080 (penalties)
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.