Washington Clauses Relating to Venture Nonexecutive Employees
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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 ...
The law prohibits nondisclosure and nondisparagement provisions in agreements concerning conduct that occurred at the workplace, at work-related events coordinated by or through the employer, between employees, or between an employer and an employee, whether on or off the employment premises.
On February 21, 2023, the Board returned to its pre-Trump administration rule: broad confidentiality and non-disparagement terms in severance agreements will be deemed unlawful if they tend to interfere with, restrain, or coerce an employee's ability to speak about the severance agreement or otherwise communicate with ...
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 ...
Washington state now joins California as the second state to make non-disparagement and non-disclosure agreements (NDAs) in employer settlements and contracts unenforceable, for harassment and discrimination.
The court held that the agreed damages for a breach of the non-disparagement clause were a penalty, as it was not a genuine pre-estimate of the loss flowing from the breach. The court consequently held that the penalty clause was void and unenforceable.
The Act (codified as RCW 49.44. 211) makes it illegal for employers in an agreement to prohibit employees from discussing conduct the employee reasonably believed to be an illegal act of discrimination, harassment, retaliation, wage and hour violation, or sexual assault.
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.
