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The Washington State Department of Labor & Industries adjusts the threshold annually to account for inflation. ing to its website, the 2023 threshold for employees is $116,593.18.
On September 1, 2023, California Governor Gavin Newsom signed Senate Bill (SB) 699 into law, prohibiting employers from entering into or attempting to enforce noncompete agreements, which are void under state law. The law is set to go into effect on January 1, 2024.
On September 1, 2023, California Governor Gavin Newsom signed Senate Bill 699, which amends California Business & Professions Code Section 16600 to prohibit an employer from entering into or attempting to enforce a non-compete agreement regardless of whether the contract was signed outside of California.
In Washington, non-solicitation clauses will be enforced so long as they're reasonable and lawful. This is the same standard that's applied to non-compete agreements and, in fact, Washington courts analyze non-solicitation restrictions in the same way they analyze non-compete restrictions.
(The current thresholds for 2023 are $116,593.18 for employees and $291,482.95 for independent contractors.) Notably, an employer may violate Washington law for any attempt to enforce a pre-2020 covenant or any attempt to require the employee to enter into an improper noncompetition provision after January 1, 2020.
Non-Compete Agreement (NCA): A contract where an employee agrees to not compete with a company for a certain period of time after employment. Non-Solicitation Agreement (NSA): A contract where an employee agrees not to solicit the company's clients, employees, or other individuals with whom the employee worked.
The 2024 annual salary threshold is $120,559.99 for employees and $301,399.98 for independent contractors. Tips: See our Legal Guide, Noncompetition Agreements, for guidance on additional requirements that must be met for these agreements to be valid in Washington.
Washington's non-compete statute, RCW 49.62. 020, originally established an income threshold of $100,000. The Washington State Department of Labor & Industries adjusts the threshold annually to account for inflation. ing to its website, the 2023 threshold for employees is $116,593.18.