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Washington Non-Compete Agreement

Washington enforces employee non-competes above a 2026 wage threshold; a total ban voids all noncompete covenants June 30, 2027. Attorney review available.

Introduction

A non-compete agreement is a contract in which an employee agrees not to compete with a business after the job ends, and Washington lets one bind only a worker whose annualized earnings clear a six-figure inflation-adjusted threshold, $126,858.83 for 2026. In Washington a non-compete is enforceable, but only within tight statutory limits under RCW 49.62, and a big change is coming. As of 2026, an employee noncompetition covenant is void unless the worker's annualized earnings exceed an inflation-adjusted threshold set each year by the Department of Labor and Industries. For 2026 that figure is $126,858.83 for employees and $317,147.09 for independent contractors. Even above the threshold, the employer must have disclosed the terms in writing by the time the worker accepted the job (or provided independent consideration if the covenant was signed after employment began), the restraint must be reasonable in duration and geography, and a covenant longer than 18 months is presumed unreasonable and unenforceable. Enforcing a covenant against a laid-off worker requires paying that worker's base salary for the restricted period. The most important development is that a 2026 law (2026 c 149) makes all noncompetition covenants void and unenforceable in Washington beginning June 30, 2027, regardless of when they were signed. Nonsolicitation, confidentiality, and trade-secret covenants sit outside this chapter and stay available. This page explains Washington's current rule and offers a template scoped to those limits. It is a state-law overview, not a promise that any given covenant will hold up.

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Key Things to Know

  1. 1

    A non-compete agreement is a contract in which one party, usually an employee, agrees not to compete with a business for a set time and area after the relationship ends. In Washington it is enforceable only within the limits of RCW 49.62, and it becomes void statewide on June 30, 2027.

  2. 2

    Washington makes an employee noncompetition covenant void unless the worker's annualized earnings exceed the statutory threshold and the covenant meets the disclosure, consideration, and reasonableness rules of RCW 49.62.020. Below the threshold the covenant is unenforceable no matter how it is written.

  3. 3

    The earnings threshold is set by law and adjusted for inflation every year (RCW 49.62.040). For 2026 it is $126,858.83 for employees and $317,147.09 for independent contractors. Do not rely on any other state salary figure, and always confirm the current year's number with the Department of Labor and Industries.

  4. 4

    Even above the threshold, the restraint must be reasonable in duration and geographic scope and necessary to protect a legitimate business interest such as trade secrets. A court or arbitrator must presume any covenant longer than 18 months is unreasonable and unenforceable, rebuttable only by clear and convincing evidence (RCW 49.62.020(2)).

  5. 5

    The employer must disclose the covenant's terms in writing no later than the time the worker accepts the offer of employment. If the covenant is signed after employment begins, the employer must provide independent consideration, such as a raise or bonus; continued at-will employment alone is not enough. Enforcing against a laid-off worker requires paying that worker's base salary for the restricted period.

  6. 6

    Washington courts may reform or partially enforce an overbroad covenant, but RCW 49.62.080 still makes the party seeking enforcement pay the worker the greater of actual damages or a $5,000 statutory penalty plus attorneys' fees, which discourages overbroad drafting even where reformation is available.

  7. 7

    Nonsolicitation, confidentiality, and trade-secret or invention covenants are excluded from the noncompete chapter (RCW 49.62.010) and remain lawful even after the June 30, 2027 ban. Washington employers protect confidential information through these tools and the state Uniform Trade Secrets Act (RCW 19.108) rather than through a non-compete.

Key decisions before you file

Before you file a Non-Compete Agreement in Washington, a few decisions shape the document: which option to choose and what each one means. The Non-Compete Agreement guide walks through them.

Open the Non-Compete Agreement guide

Customize your Non-Compete Agreement Template with DocDraft

WASHINGTON NONCOMPETITION COVENANT (Enforceable only if the RCW 49.62 requirements are met)

IMPORTANT WASHINGTON NOTICE: A noncompetition covenant is enforceable against an employee in Washington only if the worker's annualized earnings exceed the current inflation-adjusted threshold ($126,858.83 for employees in 2026), the terms were disclosed in writing by the time the worker accepted the job, and the restraint is reasonable. A covenant longer than 18 months is presumed unenforceable. Beginning June 30, 2027, ALL noncompetition covenants become void in Washington regardless of when they were signed; after that date, protect the business with a nonsolicitation, confidentiality, or trade-secret agreement instead.

  1. PARTIES. This Noncompetition Covenant is made on [DATE] between [EMPLOYER NAME] (Employer) and [EMPLOYEE NAME] (Employee).

  2. EARNINGS THRESHOLD. The parties acknowledge that the Employee's annualized earnings from the Employer exceed the threshold required by RCW 49.62.020 (for 2026, $126,858.83 for an employee, adjusted each year by the Department of Labor and Industries). If the Employee's earnings do not exceed the current threshold, this covenant is void.

  3. DISCLOSURE AND CONSIDERATION. The Employer disclosed the terms of this covenant in writing to the Employee no later than the time the Employee accepted the offer of employment. If this covenant is signed after employment began, the Employer provides the following independent consideration: [DESCRIBE RAISE, BONUS, PROMOTION, OR OTHER NEW BENEFIT].

  4. PROTECTABLE INTEREST. This covenant protects the Employer's legitimate business interests, including its trade secrets and confidential information described in [ATTACHMENT / SCHEDULE].

  5. RESTRICTION. For [DURATION NOT EXCEEDING 18 MONTHS] after the end of employment, the Employee will not engage in [DESCRIBE THE COMPETING ACTIVITY] within [SPECIFIED REASONABLE GEOGRAPHIC AREA]. The parties agree this duration and area are no broader than necessary to protect the interests in Section 4.

  6. LAYOFF. If the Employer ends the Employee's employment as the result of a layoff, this covenant is enforceable only if the Employer pays the Employee compensation equal to the Employee's base salary at the time of termination for the enforcement period, minus compensation the Employee earns through later employment (RCW 49.62.020).

  7. CONFIDENTIALITY AND TRADE SECRETS. The Employee will not use or disclose the Employer's confidential information or trade secrets, consistent with the Washington Uniform Trade Secrets Act (RCW 19.108). This obligation is independent of the restriction above and survives the June 30, 2027 change in the law.

  8. GOVERNING LAW; REFORMATION; SEVERABILITY. This covenant is governed by Washington law. If a court finds any term overbroad, it may reform the term to the extent Washington law allows; the parties understand RCW 49.62.080 may require the Employer to pay the Employee the greater of actual damages or a $5,000 penalty plus attorneys' fees if reformation is needed. Any term that exceeds what RCW 49.62 permits is void to that extent.

[EMPLOYER NAME] [EMPLOYEE NAME]

Signature and date Signature and date

Note: Washington enforces employee noncompetition covenants only above the annual earnings threshold and within the disclosure and reasonableness rules of RCW 49.62.020. Beginning June 30, 2027 all noncompetition covenants are void statewide (2026 c 149). Confirm your situation before using any non-compete in Washington. For the generic template and other states, see the full Non-Compete Agreement template hub.

Washington Requirements for Non-Compete Agreement

Enforceable Only Within RCW 49.62 Limits

As of 2026 an employee noncompetition covenant is enforceable in Washington only if it meets RCW 49.62.020: the worker's annualized earnings exceed the statutory threshold, the terms were disclosed in writing by the time of acceptance, and the restraint is reasonable. Below the threshold or without disclosure the covenant is void, no matter how it is written.

2026 Earnings Threshold

Washington permits an employee non-compete only above an earnings threshold adjusted for inflation every year (RCW 49.62.040). For 2026 the figure is $126,858.83 for employees and $317,147.09 for independent contractors; the statutory base is $100,000 (RCW 49.62.020) and $250,000 (RCW 49.62.030). Do not use any other state salary figure, and confirm the current year's number with the Department of Labor and Industries.

Statewide Ban Effective June 30, 2027

A 2026 law (2026 c 149) amends RCW 49.62.020 so that, beginning June 30, 2027, all noncompetition covenants are void and unenforceable in Washington regardless of when the parties entered into them. After that date even a covenant that met every requirement when signed cannot be enforced. Plan to rely on nonsolicitation, confidentiality, and trade-secret agreements instead.

Written Disclosure and Independent Consideration

Under RCW 49.62.020 the employer must disclose the covenant's terms in writing no later than the time the worker accepts the offer of employment. If the covenant is signed after employment begins, the employer must provide independent consideration, such as a raise, bonus, or promotion; continued at-will employment alone is not enough. A covenant missing either requirement is void.

18-Month Duration Presumption

RCW 49.62.020(2) directs a court or arbitrator to presume that any noncompetition covenant lasting longer than 18 months after termination is unreasonable and unenforceable. The party seeking enforcement can rebut that presumption only by proving, with clear and convincing evidence, that a longer duration is necessary to protect its business or goodwill. Keep the duration to 18 months or less.

Layoff Compensation Requirement

If the employer ends the worker's employment as the result of a layoff, RCW 49.62.020 makes the covenant unenforceable unless the employer pays compensation equal to the worker's base salary at the time of termination for the enforcement period, minus what the worker earns through later employment. A Washington employer must decide whether restricting a laid-off worker is worth the ongoing pay.

Reformation Carries a Penalty

Washington courts may reform or partially enforce an overbroad covenant, but RCW 49.62.080 makes the party seeking enforcement pay the worker the greater of actual damages or a $5,000 statutory penalty, plus reasonable attorneys' fees and costs, when a court reforms a covenant or finds it violates the chapter. Draft narrowly, because overbreadth is penalized even when a court narrows the clause.

Use Nonsolicitation or Confidentiality Instead

Nonsolicitation, confidentiality, and trade-secret or invention covenants are excluded from the noncompete chapter (RCW 49.62.010) and stay lawful even after the June 30, 2027 ban. Washington employers protect confidential information and customer relationships through these tools and the state Uniform Trade Secrets Act (RCW 19.108), which restrain misuse of information without restricting where a former worker may work.

Frequently Asked Questions

As of 2026, yes, but only within limits. Under RCW 49.62.020 an employee noncompetition covenant is void unless the worker's annualized earnings exceed the statutory threshold ($126,858.83 for employees in 2026), the terms were disclosed in writing by the time the worker accepted the job, and the restraint is reasonable. Below the threshold it is unenforceable. Importantly, a 2026 law voids all noncompetition covenants in Washington beginning June 30, 2027, regardless of when they were signed.

Under RCW 49.62.020(2), a court or arbitrator must presume that any noncompetition covenant lasting longer than 18 months after termination is unreasonable and unenforceable. The employer can rebut that presumption only by proving with clear and convincing evidence that a longer period is necessary to protect its business or goodwill. In practice, Washington covenants are kept to 18 months or less, and any duration becomes moot once the statewide ban takes effect on June 30, 2027.

Washington only allows an employee noncompetition covenant if the worker's annualized earnings exceed a threshold that the Department of Labor and Industries adjusts for inflation each year under RCW 49.62.040. For 2026 the threshold is $126,858.83 for employees and $317,147.09 for independent contractors. The statutory base figures are $100,000 for employees (RCW 49.62.020) and $250,000 for contractors (RCW 49.62.030). Always confirm the current year's number before relying on it.

Yes. A 2026 law (2026 c 149) amends RCW 49.62.020 so that, beginning June 30, 2027, all noncompetition covenants are void and unenforceable in Washington regardless of when the parties entered into them. After that date an employer cannot enforce even a covenant that met every requirement when it was signed. Nonsolicitation, confidentiality, and trade-secret agreements are outside the chapter and remain available to protect a business.

Yes. RCW 49.62.020 makes an employee covenant void unless the employer disclosed its terms in writing no later than the time of the worker's initial acceptance of the offer of employment. If the covenant is presented after employment has already begun, it is void unless the employer provides independent consideration, meaning a new benefit such as a raise, bonus, or promotion. Simply continuing an at-will job is not enough consideration in Washington.

Only by paying for it. Under RCW 49.62.020, if the worker is terminated as the result of a layoff, the covenant is unenforceable unless the employer pays compensation equal to the worker's base salary at the time of termination for the enforcement period, minus any compensation the worker earns through later employment. This makes a Washington employer weigh whether restricting a laid-off worker is worth the ongoing pay obligation.

A Washington court or arbitrator may reform, rewrite, or partially enforce an overbroad covenant. But RCW 49.62.080 discourages overbroad drafting: if a court has to reform a covenant or finds it violates the chapter, the party seeking enforcement must pay the worker the greater of actual damages or a $5,000 statutory penalty, plus reasonable attorneys' fees and costs. So drafting a covenant too broadly carries a real cost even when a court narrows it.

No. In 2024 the Federal Trade Commission issued a rule that would have banned most non-competes nationwide, but a federal court set it aside before it took effect, so it is not currently in force and its status has remained unsettled. Either way, Washington's own statute controls: RCW 49.62 governs today, and the state's own ban on all noncompetition covenants takes effect June 30, 2027 independent of anything the federal rule does.