The state of Washington has several laws in place that are designed to help protect employees from restrictions that could impact their overall income. In an economy where many people hold multiple jobs or need to obtain employment quickly, being held down by a non-compete agreement could leave you scrambling to earn enough income to maintain your lifestyle. Taking a look at how non-compete agreement laws work in Washington State makes it easier to uphold your rights as an employee.
Pay Attention to Earnings Thresholds
One of the most notable laws regarding non-compete agreements is based on income restrictions. Over the past several years, the earnings threshold has slowly been rising. In 2026, only employees who make over $126,858.83 may be held to a non-compete agreement. Independent contractors have an even higher threshold of $317,147.09. Using these thresholds as a general guideline helps you know when a request to sign a non-compete agreement might be void from the very beginning.
Expect Proper Notice of Potential Agreements
Employees in the state can also rest assured that they won’t face being held to follow a non-compete clause without proper notice. Here, an employer must provide you with proper notice of the non-compete requirement at the time of your initial employment offer.
If an employer chooses to issue a non-compete requirement after you are employed, then they must offer a notable independent consideration. For instance, a significant bonus or promotion might put you over the income threshold, which could lead to the employer being able to request a non-compete agreement.
Be Aware of the General Reasonable Time and Geographical Limits
Since someone in a specific field might have limited opportunities to find similar levels of employment, the laws also include making sure the agreement’s requirements end in a reasonable amount of time. In Washington, this is viewed as within 18 months.
You can also expect the non-compete agreement to only impact a reasonable geographic area. Keep in mind, however, that this is typically determined on a case-by-case basis. Naturally, one might consider a reasonable area where a business has its primary customer base or might need to protect confidential company information. In Washington, the courts have the authority to rewrite or void broad geographical restrictions, especially when they don’t have a clear purpose.
Understand How Layoffs Impact the Agreement
When you’re signing a non-compete, it is easy to only think about what happens if you decide to move to a different company. Unfortunately, layoffs, company sales and mergers can often happen and leave you scrambling to find a new job. The state currently instantly voids non-compete agreements for layoffs, since employees may not have any choice in the matter.
Know How to Handle Possible Violations
Being faced with a possible violation from your employer is stressful, but the state has specific guidelines in place. Currently, the laws allow for you to bring a cause of action before the courts to pursue specific forms of relief that can include statutory penalties of $5,000 or actual damages when they are greater. The laws also require a violator to potentially have to cover reasonable attorney’s fees and other expenses that you incur during the proceeding.
Non-compete agreements can sometimes have a legal purpose that allows employers to require them from their employees. The laws regarding non-compete agreements tighten from one year to the next. Knowing your rights as an employee helps you know when to seek legal counsel that can preserve your ability to pursue job opportunities that are vital for meeting your personal and professional goals.
