Covenant Agreement In Business In Washington
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FAQ
Washington is a no-fault state, so L&I will cover an allowable claim for a workplace injury regardless of who is at fault. This rule also applies to self‑insured employers.
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.
Retroactive application. This chapter applies to all proceedings commenced on or after January 1, 2020, regardless of when the cause of action arose. To this extent, this chapter applies retroactively, but in all other respects it applies prospectively. 2019 c 299 s 11.
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.
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.
In Washington, unless the agreement is entered into before employment begins, there must be additional consideration. This is similar to Oregon, where only employment or an advancement (such as raise or promotion) are sufficient consideration.
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.
A "Covenant Not to Sue" is a legal agreement in which one party agrees not to file a lawsuit against the other party over a specific issue or event. This clause aims to prevent litigation by settling disputes or waiving certain legal rights in advance.
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.
Covenants not to compete are contractual agreements between employees and employers whereby the employee promises not to compete with the employer for a specific period of time and/or within a particular geographic area should the employment relationship terminate.
