Washington's Non-Compete Law: What Is Enforceable Now, and the 2027 Ban

Until June 30, 2027, a Washington non-compete is void unless the employee earns more than $126,858.83 (2026), the terms were disclosed in writing by the time the offer was accepted, and other conditions are met. Starting June 30, 2027, all non-competes are void regardless of when they were signed, and trying to enforce one is a violation. Violations cost the greater of actual damages or $5,000, plus attorneys' fees.

By Trella Commercial · Updated October 5, 2026

The short version

Now (through June 29, 2027): non-competes are void unless the employee's annualized earnings exceed $126,858.83 in 2026 ($317,147.09 for independent contractors), terms were disclosed in writing no later than acceptance of the offer, and the other conditions of RCW 49.62 are met.
From June 30, 2027: under 2026 c 149 (ESHB 1155), all non-competes are void and unenforceable regardless of when they were signed. Enforcing, attempting or threatening to enforce, or even telling a worker they are bound by one becomes a violation.
Notice by October 1, 2027: employers must make reasonable efforts to notify, in writing, current and former employees and contractors whose non-compete is still in effect.
Nonsolicitation survives, narrower: customer nonsolicitation agreements remain allowed but are limited to customers the employee had a direct relationship with and must end within 18 months.
The penalty: the greater of actual damages or $5,000 per violation, plus attorneys' fees and costs (RCW 49.62.080).

The rules until June 30, 2027

Condition	Requirement	Source
Earnings	Void unless annualized earnings exceed the threshold: $126,858.83 for employees and $317,147.09 for independent contractors in 2026	RCW 49.62.020, .030; L&I
Disclosure	Terms disclosed in writing no later than the employee's acceptance of the offer; if signed after employment begins, independent consideration is required	RCW 49.62.020
Layoffs	Enforceable against a laid-off employee only if the employer pays base salary for the enforcement period, minus earnings from new employment	RCW 49.62.020
Duration	More than 18 months after termination is presumed unreasonable, rebuttable only by clear and convincing evidence	RCW 49.62.020
Venue and law	Void if it requires a Washington-based worker to litigate outside Washington, deprives them of the chapter's protections, or applies another state's law	RCW 49.62.050
Franchise no-poach	Franchisors may not restrict franchisees from hiring each other's employees	RCW 49.62.060
Moonlighting	Employees earning less than twice the state minimum wage can't be barred from holding an additional job, with limited exceptions	RCW 49.62.070

Since 2024, a "noncompetition covenant" also includes an agreement that directly or indirectly prohibits accepting or transacting business with a customer, so "no-business" clauses count as non-competes.

The 2027 ban

Change	What it means
All non-competes void	Beginning June 30, 2027, every noncompetition covenant is void and unenforceable, regardless of when it was signed
Enforcement is a violation	Enforcing, attempting or threatening to enforce, representing that a worker is bound, or entering into a non-compete becomes a violation
Broader definition	Includes clauses requiring a worker to return, repay, or forfeit compensation or benefits for engaging in a lawful trade, and certain performer agreements
Notice	By October 1, 2027, employers must make reasonable efforts to give written notice to current and former employees and independent contractors whose non-compete is still in effect
Sale of a business	Covenants tied to buying or selling an interest of 1% or more of a business remain outside the ban
Nonsolicitation	Still allowed, but narrowly construed: customer nonsolicitation covers current or prospective customers, patients, or clients the worker established or substantially developed a direct relationship with, and must end within 18 months; "no-acceptance" clauses do not qualify
Education repayment	Agreements to repay education costs are excluded if they end within 18 months, are prorated, and release the worker for good cause
Pending cases	Proceedings started before June 30, 2027 follow the old law

What employers should do now

Inventory every agreement with a non-compete, no-business, forfeiture-for-competition, or nonsolicitation clause, for current and former workers and contractors.
Stop relying on non-competes for new hires below the threshold today, and plan for none at all after June 29, 2027.
Rewrite nonsolicitation clauses to the 2027 standard: direct relationships only, 18 months maximum.
Lean on confidentiality and trade secret protections, which remain available.
Prepare the October 1, 2027 notice for workers whose covenants will still be in effect.
Do not threaten enforcement in exit letters or cease-and-desist letters after June 30, 2027.

Does insurance cover non-compete claims?

Situation	Coverage
A worker sues for the $5,000 penalty or damages over an unlawful covenant	Often excluded or contested as a contractual or statutory claim; some EPLI policies may defend. Check the wording.
The employer sues a former employee to enforce a covenant	Not covered; insurance defends claims against you, not suits you bring
A worker alleges retaliation for refusing to sign or for competing lawfully	Retaliation allegations may fall under EPLI
Trade secret misappropriation by a former employee	Not an insurance matter for the employer as plaintiff; some cyber or crime policies respond to data theft

The practical protection is compliance. See the complete EPLI guide for what employment practices insurance does cover.

Common questions

Are non-competes enforceable in Washington?

Until June 30, 2027, only if the employee's annualized earnings exceed the threshold ($126,858.83 in 2026), the terms were disclosed in writing by the time the offer was accepted, and the other conditions of RCW 49.62 are met. Starting June 30, 2027, all non-competes are void.

When does Washington's non-compete ban take effect?

June 30, 2027, under 2026 c 149 (ESHB 1155). From that date, all noncompetition covenants are void regardless of when they were signed, and attempting or threatening to enforce one is a violation.

Do Washington employers have to notify workers about the ban?

Yes. By October 1, 2027, employers must make reasonable efforts to provide written notice to current and former employees and independent contractors whose noncompetition covenant is still within its effective period.

Are nonsolicitation agreements still allowed in Washington?

Yes, but after June 30, 2027 they are narrowly construed: a customer nonsolicitation agreement may cover only current or prospective customers, patients, or clients the worker had a direct relationship with, and it must end within 18 months after termination.

What is the penalty for an unlawful non-compete in Washington?

The greater of actual damages or a $5,000 statutory penalty, plus reasonable attorneys' fees, expenses, and costs (RCW 49.62.080). The Attorney General can also enforce the law.

Sources

This page is general information, not legal advice. Have agreements reviewed by employment counsel. Laws were checked against primary sources in October 2026.

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