Are Non-Competes Enforceable in Washington?
Last updated: 2026-10-07 · Verified against the statutes 2026-10-07
Pay threshold / worker limits
Void unless pay over $126,858.83; full ban from June 30, 2027
Under current Washington law a non-compete is void unless the employee's annualized W-2 earnings exceed $126,858.83 in 2026 ($317,147.09 for independent contractors), its terms were disclosed in writing by the time the offer was accepted (or independent consideration was given if signed later), and laid-off employees are paid their base salary during enforcement. Covenants longer than 18 months are presumed unreasonable, and Washington workers cannot be forced into out-of-state law or courts. A 2026 law (ESHB 1155) makes every non-compete void from June 30, 2027, no matter when it was signed.
Check a non-compete
Answer a few questions; the result cites the statute behind each point. Rules verified 2026-10-07. Saved only in your browser.
Thresholds are measured differently by state (salary, cash compensation, W-2 box 1).
Allowed only with strict limits
Washington allows this non-compete only if it meets the statute's conditions — check each item below.
- Washington: Void unless pay over $126,858.83; full ban from June 30, 2027. RCW 49.62
- Enter annual earnings — Washington voids non-competes below $126,858.83. Earnings from the party seeking enforcement, annualized (W-2 box 1), must exceed $100,000 adjusted yearly by L&I: $126,858.83 for 2026 WA L&I: Non-compete agreements
- If employment ends by layoff or termination without cause: If the employee is laid off, the covenant is void unless the employer pays base salary at termination, minus earnings from new employment, for the enforcement period. RCW 49.62
- Duration: More than 18 months after termination is presumed unreasonable (rebuttable only by clear and convincing evidence). RCW 49.62
Other Washington rules to check
- Notice and timing: Terms must be disclosed in writing no later than acceptance of the offer, including a specific statement if the covenant may become enforceable later as pay rises. After June 30, 2027 the law requires employers to make reasonable efforts by October 1, 2027 to notify current and former workers that their non-competes are void.
- Pay during the restricted period: Laid-off employees must be paid base salary (minus new earnings) while the covenant is enforced.
- Non-solicitation clauses: Non-solicits of employees, or of current customers to stop or reduce business, are not non-competes; a clause barring acceptance of business from customers is treated as a non-compete. From June 30, 2027, customer non-solicits are limited to customers the employee directly developed and to 18 months.
- Choice of law and venue: For Washington-based employees and contractors, any term requiring out-of-state adjudication or another state's law, or depriving them of the chapter's protections, is void.
- If a court finds it too broad: Courts may narrow an overbroad covenant to what's reasonable.
- Penalties: For a violation - or whenever a court or arbitrator reforms or partially enforces a covenant - the employer owes the greater of actual damages or $5,000, plus attorney's fees and costs; the Attorney General may also sue.
General information, not legal advice. Enforceability also depends on the exact wording, the employer's legitimate interest and the facts; talk to an employment lawyer before relying on it.
Washington non-compete rules
- Statute
- RCW 49.62
- Employee pay threshold
- $126,858.83 Earnings from the party seeking enforcement, annualized (W-2 box 1), must exceed $100,000 adjusted yearly by L&I: $126,858.83 for 2026
- Contractor threshold
- $317,147.09 Contractor earnings from the party seeking enforcement must exceed $250,000 adjusted yearly: $317,147.09 for 2026
- Independent contractors
- Covered by the statute.
- Duration
- More than 18 months after termination is presumed unreasonable (rebuttable only by clear and convincing evidence)
- Notice and timing
- Terms must be disclosed in writing no later than acceptance of the offer, including a specific statement if the covenant may become enforceable later as pay rises. After June 30, 2027 the law requires employers to make reasonable efforts by October 1, 2027 to notify current and former workers that their non-competes are void.
- Signed mid-employment
- A covenant signed after employment begins is void unless the employer gives independent consideration.
- Layoffs / firing without cause
- If the employee is laid off, the covenant is void unless the employer pays base salary at termination, minus earnings from new employment, for the enforcement period.
- Garden leave / pay
- Laid-off employees must be paid base salary (minus new earnings) while the covenant is enforced.
- Non-solicitation
- Non-solicits of employees, or of current customers to stop or reduce business, are not non-competes; a clause barring acceptance of business from customers is treated as a non-compete. From June 30, 2027, customer non-solicits are limited to customers the employee directly developed and to 18 months.
- Choice of law / venue
- For Washington-based employees and contractors, any term requiring out-of-state adjudication or another state's law, or depriving them of the chapter's protections, is void.
- Overbroad covenants
- Courts may narrow an overbroad covenant to what's reasonable
- Penalties
- For a violation - or whenever a court or arbitrator reforms or partially enforces a covenant - the employer owes the greater of actual damages or $5,000, plus attorney's fees and costs; the Attorney General may also sue.
Profession-specific rules
- LimitedPerformers: a non-compete between a performer and a performance space (or booking party) may not exceed 3 calendar days. Franchisors may not restrict hiring of other franchisees' employees, and employers may not bar workers earning under twice the state minimum wage from holding a second job (with exceptions). RCW 49.62.030-.070
Recent and pending changes
- June 30, 2027: Upcoming: ESHB 1155 (2026 c 149) takes effect - all non-competes become void regardless of when signed, and entering, enforcing, threatening or representing one becomes a violation; forfeiture-for-competition clauses count as non-competes. HB 1155 bill summary
- March 23, 2026: Governor signs ESHB 1155 (2026 c 149), effective June 30, 2027. HB 1155 bill summary
- January 1, 2026: 2026 thresholds: $126,858.83 for employees, $317,147.09 for independent contractors. WA L&I
- June 6, 2024: SSB 5935 (2024 c 36): customer-acceptance clauses count as non-competes, non-solicit exclusion limited to current customers, out-of-state venue and choice-of-law terms voided for Washington-based workers. SB 5935 bill summary
Federal law
There is no federal ban on employee non-competes. The FTC's 2024 Non-Compete Clause Rule (16 CFR Part 910), which would have voided most non-competes from September 4, 2024, never took effect: a Texas federal court set it aside nationwide on August 20, 2024 (Ryan LLC v. FTC). On September 5, 2025 the Commission voted 3-1 to drop its appeals and accept that ruling, and on February 12, 2026 it formally removed Part 910 from the Code of Federal Regulations. State law therefore decides whether a non-compete is enforceable.
Frequently asked questions
Are non-competes enforceable in Washington?
Void unless pay over $126,858.83; full ban from June 30, 2027. Under current Washington law a non-compete is void unless the employee's annualized W-2 earnings exceed $126,858.83 in 2026 ($317,147.09 for independent contractors), its terms were disclosed in writing by the time the offer was accepted (or independent consideration was given if signed later), and laid-off employees are paid their base salary during enforcement. Covenants longer than 18 months are presumed unreasonable, and Washington workers cannot be forced into out-of-state law or courts. A 2026 law (ESHB 1155) makes every non-compete void from June 30, 2027, no matter when it was signed.
Is there a salary threshold for non-competes in Washington?
Yes — $126,858.83. Earnings from the party seeking enforcement, annualized (W-2 box 1), must exceed $100,000 adjusted yearly by L&I: $126,858.83 for 2026
How long can a non-compete last in Washington?
More than 18 months after termination is presumed unreasonable (rebuttable only by clear and convincing evidence)
Did the FTC ban non-competes in Washington?
No. The FTC's 2024 rule never took effect — a federal court set it aside in August 2024, the FTC dropped its appeals in September 2025 and removed the rule from the Code of Federal Regulations in February 2026. State law controls, though the FTC still challenges some non-competes case by case.
Official Sources
Figures checked against these sources on 2026-10-07Other states
Same category (Pay threshold / worker limits): Colorado, District of Columbia, Illinois, Maine, Maryland, Massachusetts, Nevada, New Hampshire
Protect information instead with a confidentiality agreement (NDA generator), or hiring in Washington? Use the offer letter generator.
Not legal advice. Enforceability depends on the agreement's wording and the facts; consult an employment attorney licensed in Washington.