Washington State Bans Noncompete Agreements

Noncompetition agreements have become increasingly disfavored in Washington in recent years, and last week, Washington Governor Bob Ferguson took it one step further by signing HB 1155 into law. The new law, which will take effect on June 30, 2027, bans nearly all noncompetition agreements with Washington employees, including existing noncompetes that were executed prior to the law’s effective date

By October 1, 2027, covered employers must make “reasonable efforts” to provide written notice to all current and former employees and independent contractors with a noncompete still within its effective window that the noncompete restriction is “void and unenforceable.”

Who is covered?

The statute covers any business entity that engages in activity in Washington and prohibits entering into a noncompetition covenant with any person working in the state of Washington, including employees and independent contractors.