Restrictive Covenants In Employment Contracts In Washington
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FAQ
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.
No. Restrictive covenants have been void in Washington since 1969.
An employee can challenge a restrictive covenant if they believe it is unreasonable or prevents them from finding suitable employment. If the covenant is too broad or not essential to protecting the employer's business, it may be deemed unenforceable by the courts.
In order for an employee non-compete agreement to be valid and enforceable in Washington in 2025, an employee must earn at least $123,394.17 per year from the employer seeking to enforce the non-compete.
Only workers who earn more than $123,394.17 per year or $308,485.43 per year for independent contractors can be held to non-competition agreements. The maximum wage reimbursements for the Stay at Work and Preferred Worker Programs are increasing from $10,000 to $25,000 per claim in 2025.
No. Restrictive covenants have been void in Washington since 1969.
Salary level test: The employee's salary must be more than a minimum specified amount. For 2025, the minimum salary threshold is: $1,332.80/week ($69,305.60) for small employers (1-50 employees) $1,499.40/week ($77,968.80) or large employers (51 or more employees)
Restrictive Covenants, Explained This restricts how homeowners can manage and modify their land. Examples include restrictions on fence options, the type of animals allowed and the use of outbuildings, such as sheds.
Washington has severely restricted non-competition agreements since 2020 when a new state law took effect. This law includes rules on anti-moonlighting policies and provisions: No Moonlighting Restrictions for Low Wage Workers, Unless an Exception Applies.
