Washington Moves to Ban All Noncompete Agreements - HR ALERTS

Washington Moves to Ban All Noncompete Agreements

Effective Date: June 30, 2027

Washington is set to join a growing group of states eliminating noncompete agreements entirely, signaling a continued shift toward increased employee mobility and tighter restrictions on post-employment limitations.

Under newly passed legislation, all noncompete agreements in Washington will become void and unenforceable effective June 30, 2027, regardless of when they were originally signed.

This expands the state’s current law, which already limits non-competes for lower-wage workers, into a full prohibition that applies broadly to employees and independent contractors.

What Is Changing

The law takes an expansive view of what qualifies as a noncompete. In addition to traditional agreements, the definition now includes:

• Restrictions on performers engaging in lawful work

• Provisions requiring repayment or forfeiture of compensation tied to working elsewhere

At the same time, certain agreements remain permissible, including:

• Non-solicitation agreements, which must be narrowly defined

• Confidentiality and trade secret protections

• Agreements related to the sale of a business or ownership interest

Notice Requirement

Employers will be required to notify all current and former employees and contractors by October 1, 2027, if they have noncompete agreements that are no longer enforceable.

Why This Matters

This is part of a broader national trend away from noncompete enforcement. Legislators are increasingly focused on worker mobility, wage growth, and access to opportunity.

For employers, this means a shift away from broad restrictive covenants and toward more targeted protections such as confidentiality, trade secret safeguards, and carefully structured non-solicitation agreements.

What Employers Should Do Now

While the law does not take effect until 2027, employers should begin planning ahead:

• Review existing noncompete agreements for Washington-based workers

• Evaluate alternative protections for client relationships and confidential information

• Ensure non-solicitation and confidentiality provisions are clearly defined and enforceable

• Begin thinking through communication strategies for the required 2027 notice

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