Washington Non-Compete Agreement Template
Draft a Washington non-compete under Chapter 49.62 RCW, which voids covenants below the 2026 income thresholds (about $126,859 for employees, $317,147 for contractors) and is being superseded by a near-total statewide ban effective June 30, 2027.
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Legal Requirements in Washington
A non-compete is void unless the employee's earnings exceed the annually adjusted threshold, set at $126,858.83 for 2026 (RCW 49.62.020).
For independent contractors, the covenant is void unless earnings exceed a higher threshold, $317,147.09 for 2026 (RCW 49.62.030).
The terms must be disclosed in writing no later than the time the worker accepts the offer, or the covenant is void (RCW 49.62.020(1)(a)).
If a non-compete is entered into after employment begins, the employer must provide independent, additional consideration beyond continued employment (RCW 49.62.020(1)(b)).
An employee laid off may have the covenant enforced only if paid their base salary for the enforcement period, less any compensation earned elsewhere (RCW 49.62.020(2)).
Key Statutes & Regulations
- Chapter 49.62 RCW (Noncompetition Covenants, 2020, as amended)
- RCW 49.62.020 (employee income threshold; disclosure and consideration requirements)
- RCW 49.62.030 (independent contractor income threshold)
- RCW 49.62.040 (annual inflation adjustment of dollar amounts)
- RCW 49.62.080 (remedies: greater of $5,000 or actual damages, plus attorney's fees); ESHB 1155 (2026) (near-total ban effective June 30, 2027)
Common Pitfalls
- •Continuing to draft new non-competes for Washington workers without planning for the June 30, 2027 ban that voids them all.
- •Imposing a covenant on a worker below the current-year threshold, making it void and triggering statutory penalties.
- •Failing to disclose the covenant in writing by the time the worker accepts the job offer.
- •Adding a non-compete mid-employment without giving independent, additional consideration.
Local Terminology
- Noncompetition covenant
- A written or oral covenant restraining a person from engaging in a lawful profession or business, as defined in RCW 49.62.010; narrowly defined to exclude many non-solicits and confidentiality terms.
- Income threshold
- The annually inflation-adjusted earnings floor (employee $126,858.83; contractor $317,147.09 for 2026) below which a non-compete is void.
- Independent consideration
- Value beyond continued employment that must support a non-compete entered into after employment begins.
- Near-total ban (ESHB 1155)
- The 2026 law that voids all Washington non-competition covenants effective June 30, 2027, and eliminates the income thresholds going forward.
How Washington Differs
Washington enacts a near-total ban (ESHB 1155, signed March 23, 2026) that voids all non-competition covenants effective June 30, 2027, regardless of when signed.
Income thresholds are adjusted for inflation every year on September 30, so the figure that voids a covenant changes annually.
Contractors face a threshold roughly 2.5 times the employee figure, far higher than in most states.
Any covenant longer than 18 months after termination is presumptively unreasonable and unenforceable (RCW 49.62.020(3)).
Violations carry a statutory penalty: the greater of $5,000 or actual damages, plus attorney's fees (RCW 49.62.080).
Frequently Asked Questions
Are non-competes banned in Washington?
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Effective June 30, 2027, yes. Washington's ESHB 1155, signed March 23, 2026, voids all non-competition covenants regardless of when they were signed. Until then, Chapter 49.62 RCW still allows them only above the income thresholds, so any new Washington non-compete has a short shelf life.
What is Washington's non-compete income threshold for 2026?
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For 2026, a non-compete is void unless an employee earns more than $126,858.83, or an independent contractor earns more than $317,147.09 (Chapter 49.62 RCW). These thresholds are adjusted for inflation each year on September 30 by the Department of Labor & Industries.
How long can a Washington non-compete last?
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Under RCW 49.62.020(3), any non-compete longer than 18 months after termination is presumed unreasonable and unenforceable unless the employer proves a longer duration is necessary. Note that all non-competes become void on June 30, 2027 under ESHB 1155.
Did the FTC rule affect Washington non-competes?
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No. The FTC's 2024 rule was vacated in Ryan LLC v. FTC and removed from federal regulations in February 2026. Washington's own statute, Chapter 49.62 RCW, governs, and the state went further by enacting a near-total ban effective June 30, 2027.
Available in Other Jurisdictions
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