Washington State Makes Worker Non-Compete Obsolete

The landscape regarding worker non-competition covenants (often referred to as non-compete agreements) has been in flux over the last few years at both the state and federal levels. Since January 2020, Washington State has limited when non-competes may be used for workers based in Washington. Now, Washington State joins several other states, including California, Minnesota, North Dakota, and Oklahoma, in banning all employee and independent contractor non-competes, with an exception for agreements relating to the sale of at least one percent interest in a business. The non-compete ban takes effect on June 30, 2027, but it will apply to all non-competes “regardless of when the parties entered into the” agreement. By October 1, 2027, companies must notify all current and former employees and independent contractors whose non-competes are still within its stated effective period that their non-competes are no longer in effect.