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Near-total ban (2027)

Non-compete enforceability in Washington

Pre-2027-06-30: threshold-based — void for employees earning ≤ ~$120K (annually indexed). Effective June 30, 2027 (HB 1155): near-total invalidation.

What this means for you

Washington is transitioning to a near-total ban (effective June 30, 2027). Until that date a threshold regime applies; after it, most non-competes become void by statute.

Doctrine

Blue-pencil discretionary. Courts may strike specific over-broad terms but the practice varies — over-broad covenants drafted in bad faith are often refused enforcement entirely.

Salary / wage threshold

$120,559

2024 value

Pre-2027 threshold: covenants void unless employee earnings (annualized) exceed the indexed threshold. 2024 published value $120,559; independent contractor threshold = 2× employee value. 2025/2026 indexed values not verified — flag as ESTIMATE.

Garden leave / consideration

Garden-leave-style pay required ONLY if non-compete is enforced after a layoff (RCW 49.62.020(1)(b)) — base salary minus comp from new work.

Gotchas

  • Effective date for the 2026 expansion is June 30, 2027, NOT January 1, 2027.
  • Pre-2027 threshold values are indexed annually by L&I — current-year values must be re-verified.

Federal context

The FTC's 2024 federal non-compete ban was vacated nationwide in Ryan v. FTC and removed from the Code of Federal Regulations in February 2026. There is no federal ban in force — so Washington's state law controls. Read the federal status.

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