
Findings-Construction; Definitions; When void and unenforceable; When void and unenforceable against independent contractors; Dollar amounts adjusted; Unenforceable provisions; Franchisor restrictions; Employees having an additional job—When authorized; Violation of chapter 49.62 RCW—Relief—Remedies; Conflict of laws; Retroactive application; Construction;
Section 49.62.005. Findings
See https://app.leg.wa.gov/RCW/default.aspx?cite=49.62
Section 49.62.010. Definitions
(1) A noncompetition covenant is void and unenforceable:
(a)(i) Unless the employer discloses the terms of the covenant in writing to the prospective employee no later than the time of the initial oral or written acceptance of the offer of employment and, if the agreement becomes enforceable only at a later date due to changes in the employee’s compensation, the employer specifically discloses that the agreement may be enforceable against the employee in the future; or
(ii) If the covenant is entered into after the commencement of employment, unless the employer provides independent consideration for the covenant;
(b) Unless the employee’s earnings from the party seeking enforcement, when annualized, exceed one hundred thousand dollars per year. This dollar amount must be adjusted annually in accordance with RCW 49.62.040;
(c) If the employee is terminated as the result of a layoff, unless enforcement of the noncompetition covenant includes compensation equivalent to the employee’s base salary at the time of termination for the period of enforcement minus compensation earned through subsequent employment during the period of enforcement.
(2) A court or arbitrator must presume that any noncompetition covenant with a duration exceeding eighteen months after termination of employment is unreasonable and unenforceable. A party seeking enforcement may rebut the presumption by proving by clear and convincing evidence that a duration longer than eighteen months is necessary to protect the party’s business or goodwill.
See https://app.leg.wa.gov/RCW/default.aspx?cite=49.62
Section 49.62.030. When void and unenforceable against independent contractors
(1) A noncompetition covenant is void and unenforceable against an independent contractor unless the independent contractor’s earnings from the party seeking enforcement exceed two hundred fifty thousand dollars per year. This dollar amount must be adjusted annually in accordance with RCW 49.62.040.
(2) The duration of a noncompetition covenant between a performer and a performance space, or a third party scheduling the performer for a performance space, must not exceed three calendar days.
See https://app.leg.wa.gov/RCW/default.aspx?cite=49.62
Section 49.62.040. Dollar amounts adjusted
The dollar amounts specified in RCW 49.62.020 and 49.62.030 must be adjusted annually for inflation. Annually on September 30th the department of labor and industries must adjust the dollar amounts specified in this section by calculating to the nearest cent using the consumer price index for urban wage earners and clerical workers, CPI-W, or a successor index, for the twelve months prior to each September 1st as calculated by the United States department of labor. The adjusted dollar amount calculated under this section takes effect on the following January 1st.
See https://app.leg.wa.gov/RCW/default.aspx?cite=49.62
Section 49.62.050. Unenforceable provisions
A provision in a noncompetition covenant signed by an employee or independent contractor who is Washington-based is void and unenforceable:
(1) If the covenant requires the employee or independent contractor to adjudicate a noncompetition covenant outside of this state;
(2) To the extent it deprives the employee or independent contractor of the protections or benefits of this chapter; or
(3) If it allows or requires the application of choice of law principles or the substantive law of any jurisdiction other than Washington state.
See https://app.leg.wa.gov/RCW/default.aspx?cite=49.62
Section 49.62.060. Franchisor restrictions
(1) No franchisor may restrict, restrain, or prohibit in any way a franchisee from soliciting or hiring any employee of a franchisee of the same franchisor.
(2) No franchisor may restrict, restrain, or prohibit in any way a franchisee from soliciting or hiring any employee of the franchisor.
See https://app.leg.wa.gov/RCW/default.aspx?cite=49.62
(1) Upon a violation of this chapter, the attorney general, on behalf of a person or persons, may pursue any and all relief. A person aggrieved by a noncompetition covenant to which the person is a party may bring a cause of action to pursue any and all relief provided for in subsections (2) and (3) of this section.
(2) If a court or arbitrator determines that a noncompetition covenant violates this chapter, the violator must pay the aggrieved person the greater of his or her actual damages or a statutory penalty of five thousand dollars, plus reasonable attorneys’ fees, expenses, and costs incurred in the proceeding.
(3) If a court or arbitrator reforms, rewrites, modifies, or only partially enforces any noncompetition covenant, the party seeking enforcement must pay the aggrieved person the greater of his or her actual damages or a statutory penalty of five thousand dollars, plus reasonable attorneys’ fees, expenses, and costs incurred in the proceeding.
(4) A cause of action may not be brought regarding a noncompetition covenant signed prior to January 1, 2020, if the noncompetition covenant is not being enforced.
See https://app.leg.wa.gov/RCW/default.aspx?cite=49.62
Section 49.62.090. Conflict of laws
(1)(a) Subject to (b) of this subsection, this chapter displaces conflicting tort, restitutionary, contract, and other laws of this state pertaining to liability for competition by employees or independent contractors with their employers or principals, as appropriate.
(b) This chapter does not amend or modify chapter 19.108 RCW.
(2) Except as otherwise provided in this chapter, this chapter does not revoke, modify, or impede the development of the common law.
See https://app.leg.wa.gov/RCW/default.aspx?cite=49.62
This chapter is an exercise of the state’s police power and shall be construed liberally for the accomplishment of its purposes.
See https://app.leg.wa.gov/RCW/default.aspx?cite=49.62
This statute was amended in 2024 by Substitute Senate Bill 5935 (2024).