Are Non-Competes Enforceable in Washington? Your Rights Explained

In Washington, a non-compete agreement is void and unenforceable against any employee who earns less than a statutory earnings threshold that the state adjusts every year for inflation. Under RCW 49.62, that threshold was roughly $123,394 per year for employees (and about $308,485 for independent contractors) in 2025, and it rises each January. The figure for 2026 is set by the Washington State Department of Labor & Industries (L&I), so confirm the current number on L&I's website before assuming a non-compete applies to you. If you make less than that threshold, your employer generally cannot enforce a non-compete against you at all, no matter what the contract says.

This makes Washington one of the more worker-protective states in the country. There is no federal law that broadly bans non-competes. The Federal Trade Commission attempted a nationwide ban in 2024, but courts blocked it from taking effect, so the rules that actually govern you come from your state. In Washington, those rules are unusually clear and specific.

Washington's Non-Compete Law: RCW 49.62

Washington overhauled its non-compete rules with a law that took effect January 1, 2020, codified at RCW 49.62. The Legislature amended and strengthened it again in 2024. The core idea is that non-competes are disfavored and are only enforceable when an employer meets several strict conditions. If the employer fails any one of them, the non-compete is void.

The key requirements include:

• The earnings threshold. The worker must earn more than the annual, inflation-adjusted minimum (about $123,394 for employees in 2025). Below that, the agreement is unenforceable as a matter of law.
• Written disclosure up front. If the non-compete is a condition of a new job, the employer must disclose the terms in writing no later than the time you accept the offer. A non-compete sprung on you after you start is unenforceable unless you receive new, independent compensation for signing it.
• Independent consideration for current employees. If you are already employed and your employer asks you to sign a non-compete, they must give you something of real value beyond continued employment, such as a raise, bonus, or promotion.
• A reasonable duration. The law presumes that any non-compete lasting longer than 18 months after you leave is unreasonable and unenforceable. An employer can only overcome that presumption with clear and convincing evidence that a longer period is necessary to protect its business.

Special Protection for Layoffs

Washington added a rule that many states lack. If your employer lays you off, a non-compete is unenforceable during the layoff period unless the employer keeps paying you. Specifically, enforcement requires the employer to pay your base salary (minus any compensation you earn from new work) for the period it wants the non-compete to apply. In short, an employer cannot eliminate your job and then block you from earning a living elsewhere without paying you.

What Counts as a Non-Compete (and What Doesn't)

The law targets agreements that restrain you from working for a competitor or starting a competing business. It does not automatically ban every restrictive clause. The following are generally treated differently and may still be enforceable:

• Confidentiality and trade-secret agreements that protect genuinely proprietary information.
• Non-solicitation agreements, narrowly defined. The 2024 amendments tightened the definition so that overly broad "customer non-solicitation" clauses can be treated as illegal non-competes.
• Agreements tied to the sale of a business, where the seller agrees not to compete.
• Franchise agreements in certain circumstances.

Washington also bars employers from restricting employees who earn less than twice the state minimum wage from taking a second job or working as an independent contractor (subject to legitimate safety and conflict-of-interest exceptions). The state minimum wage is set by L&I and adjusted annually; as of 2026 it is among the highest in the nation (over $16 per hour), well above the federal floor of $7.25 under the Fair Labor Standards Act (FLSA). Confirm the current Washington minimum wage on the L&I website, since it changes each January.

Out-of-State Clauses Won't Save an Employer

Some employers try to dodge Washington law by writing that the contract is governed by another state's law or must be litigated elsewhere. RCW 49.62 voids those choice-of-law and venue provisions for workers who are based in Washington. If you live and work in Washington, your employer cannot force you into a friendlier state's courts to enforce a non-compete against you.

Penalties: Why Employers Take This Seriously

Washington gives the law real teeth. If an employer tries to enforce, or even includes, a non-compete that violates RCW 49.62, the court or arbitrator must award the worker the greater of actual damages or a $5,000 statutory penalty, plus attorneys' fees and costs. This applies even if the employer merely sues to enforce an illegal provision and the worker prevails. That fee-shifting rule is a powerful incentive for employers to comply and gives workers leverage to push back.

What to Do If You Are Asked to Sign or Threatened

• Read the agreement before you accept an offer. If a non-compete first appears after you have already started, point out that the law requires up-front disclosure or independent consideration.
• Check the earnings threshold. If you earn below the current annual figure published by L&I, the non-compete is likely void regardless of what it says.
• Look at the duration. Anything over 18 months is presumptively unenforceable.
• Keep copies. Save the agreement, your offer letter, pay records, and any communications. These establish your earnings and the timing of disclosure.
• Do not rely on threats. Employers sometimes send cease-and-desist letters that overstate their rights. An unenforceable non-compete does not become valid just because someone threatens you with it.
• Get advice. Because the statutory penalty and fee-shifting can work in your favor, an employment attorney can often evaluate your situation at little or no upfront cost.

Where to Verify Washington's Rules

The authoritative sources are the Washington State Department of Labor & Industries (L&I), which publishes the annually updated earnings thresholds and minimum wage, and the statute itself, RCW 49.62, available through the Washington State Legislature's website. Because the earnings threshold and minimum wage are recalculated every year, always confirm the current figures from L&I rather than relying on a number you saw online. If you believe an employer has violated the law, you may also consult a private employment attorney, since RCW 49.62 is primarily enforced through individual lawsuits with fee-shifting in the worker's favor.

Official Washington Sources

This page is based on Washington employment law. Rules and figures change — verify the current details directly with the official Washington sources below. This is general legal information, not legal advice.

• Washington State Department of Labor & Industries (L&I) — official Washington agency.
• File a Worker Rights Complaint (Wage Complaint)
• Title 49 RCW: Labor Regulations

Federal law and local ordinances may also apply. Federal laws like the Fair Labor Standards Act set a national floor, and your city or county may add protections (such as a higher local minimum wage or paid sick leave). Check both alongside Washington state law.