Employment-based noncompete agreements are void and unenforceable in Washington State as of June 30, 2027, under the recently passed HB1155 (the Act). The Act applies retroactively to all agreements challenged in proceedings that commence on or after June 30, 2027.
The Act defines prohibited noncompete agreements broadly, to include covenants or provisions:
- that prohibit or restrain an employee or independent contractor “from engaging in a lawful profession, trade, or business of any kind”;
- that prohibit the acceptance or transaction of business with a customer (sometimes called “no-accept” agreements); and
- that impose forfeiture for competition penalties.1
The Act does not apply to the following agreements:
