Washington Employment Non-competition Package
Description
How to fill out Employment Non-competition Package?
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FAQ
In January 2023, the FTC undertook the directive from the executive order by announcing a Notice of Proposed Rulemaking that would ban all non-compete clauses in employer-employee contracts, subject to limited exceptions, including for non-competes entered as part of the sale of a business for a person holding 25% or ...
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.
To amend the Fair Labor Standards Act of 1938 to prevent employers from using non-compete agreements in employment contracts for certain non-exempt employees.
Now, the Supreme Court has resolved the question by holding that employee non-competition agreements are prohibited by Section 16600 unless they fall within a statutory exception. In Edwards v. Arthur Andersen, a former employee, Mr. Edwards, challenged a non-competition agreement that he had signed when he was hired.
As of October 1, 2022, a new District law makes it illegal for employers to impose noncompete clauses and policies (noncompetes) on many District employees.
However, under a Washington law passed in 2019, which took effect on January 1, 2020, noncompetition agreements can be enforced only against employees who earn $100,000 or more based on an employee's income reported in Box 1 of Internal Revenue Service (IRS) Form W-2 and independent contractors earning more than ...
Freedom to moonlight: The new law also affects so-called moonlighting policies, allowing any employee who makes less than twice the minimum wage to hold other jobs, unless the extra work would sap all of their energy or pose a danger to themselves or the public.
The FTC is seeking to ban non-competes on the basis that they constitute ?unfair methods of competition.? But the FTC Act limits the FTC's authority to address unfair competition more than other areas, and there is significant authority refuting an argument that non-competes categorically constitute unfair competition.