Washington Law Limiting Noncompetes Takes Effect January 1

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Washington’s new law significantly restricting employers’ use of noncompetition agreements takes effect January 1, 2020. In addition to limiting the use of noncompetes, the law provides for generous damages when an individual successfully claims a noncompete is unenforceable.

The new law, which limits noncompetition agreements for both employees and independent contractors, makes six significant changes.

The law limits the employees and independent contractors with whom an employer or business can enter into a noncompetition agreement. It bars all noncompetes with employees whose W-2 earnings are less than $100,000 a year and with independent contractors who earn less than $250,000

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