Washington State's New Noncompetition Laws

Washington state employers that rely on noncompetition agreements will face a dramatically different legal landscape beginning Jan. 1, 2020, when a new noncompetition law takes effect.

ENGROSSED SUBSTITUTE HOUSE BILL 1450

Key Elements of the New Law

Under the new law, noncompetition agreements will be void and unenforceable against an employee under the following conditions:

• The employer fails to disclose the terms of the agreement in writing to the prospective employee no later than the time of acceptance of the offer of employment.
• The noncompetition agreement is entered into after the start of employment, unless the employer provides independent consideration (such as a promotion, bonus or other benefit).