Independent Contractor Work Agreement With Non Compete Clause In Washington
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Only employees or independent contractors who earn more than the thresholds established by law can be held to non-competition agreements. If an employee or independent contractor has earnings less than the threshold specified under law, the non-compete agreements is considered void and unenforceable under RCW 49.62.
Only employees or independent contractors who earn more than the thresholds established by law can be held to non-competition agreements. If an employee or independent contractor has earnings less than the threshold specified under law, the non-compete agreements is considered void and unenforceable under RCW 49.62.
The ban covers all non-competes for U.S. workers (including employees and independent contractors) with limited carve-outs, and is subject to certain exceptions based on the FTC's statutory authority.
The Washington State Department of Labor & Industries adjusts the threshold annually to account for inflation. ing to its website, the 2025 threshold for employees is $123,394.17. Washington maintains a higher income threshold for independent contractors, which increases to $308,485.43 in 2025.
For laid-off employees, noncompete agreements are unenforceable unless the employer pays the full base salary through the noncompete period. For Washington-based employees, out-of-state forum selection clauses will not be enforced, regardless of where the employer is based.
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.
Washington Law Civil Penalties Against Employers In addition to allowing employees to speak if they reasonably believe the act was illegal, and making non-disclosure agreements for these activities unenforceable, the act also includes $10,000 in civil penalties for employers who violate the law.
Enforceability of Non-Compete Clauses In 2025, employees must earn at least $123,394.17, and independent contractors must earn $308,485.43, for such agreements to be valid, compared to the previous thresholds of $120,599.99 and $301,399.98, respectively.
Moonlighting Scenarios in Different Regions In the United States and the UK, dual employment is not illegal; however, the government has straightforward policies that employees must disclose the fact to their employers that they're taking work or projects outside their regular job.
