Washington recently passed the Act Relating to
Restraints, Including Noncompetition Covenants, on Persons Engaging
in Lawful Professions, Trades or Businesses, which
shall be effective from January 1, 2020. The Act was introduced
with the intent that there ought to be workforce mobility which is
vital to the economic growth and development of the state. It seeks
to protect employees from unreasonable non-compete clauses in their
employment agreements. Non-compete clause signed by employees
earning less than US $100,000 and independent contractors earning
less than US $250,000 annually will be unenforceable once the Act
is effective. Further, agreements wherein the non-compete provision
are applicable for a duration exceeding 18 months will also become
unenforceable.
