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ARTICLE · 10 MAY 2024

Washington State Tightens Noncompete Restrictions

Perkins Coie LLP
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Washington state businesses that have noncompetition agreements with employees or independent contractors...

United StatesEmployment and HR
James Sanders
James Sanders
Heather Shook
Heather Shook
Margo Jasukaitis
Margo Jasukaitis

Washington state businesses that have noncompetition agreements with employees or independent contractors will be subject to new requirements under the latest amendment to the state's noncompetition law beginning June 6, 2024.

Washington has restricted noncompete agreements since 2020 by prohibiting their use unless the following apply:

  • The worker earns more than a minimum compensation amount, which is adjusted annually. For 2024, the threshold is $120,559.99 for employees and $301,399.98 for independent contractors.
  • The noncompete is effective for no more than 18 months, or the business can show by clear and convincing evidence that a longer duration is necessary to protect the business or goodwill.

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