Washington State Passes Broad Prohibition On Non-compete Agreements

On March 9, 2026, Washington's legislature passed HB 1155, which effectively bans non-compete agreements for all workers in the state. Governor Ferguson signed the bill into law on March 23, 2026, and it takes effect on June 30, 2027.

Unlike current Washington law, which permits non-competes for workers earning above certain income thresholds, HB 1155 eliminates this income-based approach and bans all non-compete agreements regardless of income. The ban applies retroactively to all non-compete covenants, even those entered into before the effective date. The law significantly broadens what constitutes a prohibited "noncompetition covenant" to include any provision that requires workers to return, repay, or forfeit rights, benefits, or compensation as a consequence of engaging in lawful work. The definition also explicitly covers agreements that directly or indirectly prohibit accepting or transacting business with a customer.