Washington state enacted one of the country's strongest non-compete laws effective January 1, 2020 (RCW 49.62). Non-competes are void for employees earning below a salary threshold (approximately $116,000 in 2024, adjusted annually for inflation). Even above that threshold, restrictions are capped at 18 months and employers must disclose terms before an offer is accepted.
What is a Enforceability?
Under Washington RCW 49.62, a non-compete clause is void and unenforceable if the employee earns below the adjusted annual threshold (the equivalent of twice the state minimum wage, approximately $116,000 in 2024). For independent contractors, the threshold is approximately $290,000. Valid non-competes must: be disclosed before the job offer is accepted; not exceed 18 months in duration (rebuttably presumed unreasonable beyond 18 months); and be supported by independent consideration if presented to an existing employee. Courts cannot rewrite an unreasonable non-compete — they must void it entirely.
Red flags to watch for
Washington law voids non-competes for employees below the earnings threshold (approximately $116,000 in 2024). The clause has no legal effect.
Washington requires the non-compete to be disclosed before acceptance of the employment offer. Presenting it after you have accepted (including on day one) may make it unenforceable.
Non-competes lasting more than 18 months are rebuttably presumed unreasonable under Washington law. Employers face a high burden to justify longer restrictions.
If a non-compete is presented to an existing employee (not a new hire), Washington requires independent consideration — a raise, bonus, or other benefit — beyond continued employment.
Washington law prohibits employers from seeking damages greater than actual damages plus attorney fees. Liquidated damages clauses or penalty multipliers are not permitted.
Your legal rights
Under RCW 49.62, employers who present or enforce an unenforceable non-compete are liable to the employee for actual damages, a $5,000 penalty per violation, and attorney fees and costs. Washington courts cannot blue-pencil (rewrite) an invalid non-compete — if it fails, it is void in its entirety. Employees who are terminated or laid off may also have claims if they are not paid during the restricted period.
Questions to ask before you sign
- 1Is my annual compensation above the Washington earnings threshold for non-competes?
- 2Was the non-compete disclosed to me before I accepted the job offer?
- 3Does the restriction last 18 months or less?
- 4If I am an existing employee, what additional consideration am I receiving to sign this?
- 5Does the contract attempt to apply another state's law to avoid Washington protections?
Disclaimer: This guide is for educational purposes only and does not constitute legal advice. Contract law varies by jurisdiction and individual circumstances. Always consult a qualified legal professional before making decisions based on this information.