§ 1. Governing Statutory & Common Law Authority
The enforceability of non-competition agreements in Washington is governed by RCW § 49.62 (effective Jan 1, 2020). Non-competes void for employees earning under $126,859/year (2026) or independent contractors earning under $317,147/year. Maximum 18 months. Employer must pay garden leave if enforcing.
Recent legislative developments: 2020 law established thresholds. 2026 threshold is $126,859 for employees, $317,147 for independent contractors.
§ 2. Compensation Threshold Requirements
Washington imposes a statutory compensation threshold for non-compete enforcement. Under current law, non-compete covenants are presumptively void for employees earning below the statutory minimum. 2026 employee threshold. Independent contractor threshold is $317,147. Adjusted annually. The threshold is $126,859/year — but whether your total compensation qualifies depends on how your state counts bonuses, commissions, and equity.
§ 3. Temporal Limitations on Post-Employment Restrictions
Washington limits enforceable non-compete duration to 18 months from separation. Statutory maximum of 18 months. Agreements exceeding this cap may be subject to judicial modification or voided entirely.
§ 4. Judicial Modification (Reformation Doctrine)
Washington follows the reformation doctrine, granting courts broad authority to rewrite overbroad non-compete terms. This is the most employer-favorable approach — even a poorly drafted agreement may be reshaped into an enforceable restriction.
§ 5. Consideration & Contract Formation
Must disclose the terms of the non-compete in writing at or before the time of acceptance of employment. For existing employees, must provide independent consideration. Whether this is legally sufficient — especially for agreements presented mid-employment rather than at hiring — is frequently contested.
§ 6. Effect of Involuntary Termination
Expressly unenforceable if employee is terminated for layoff (involuntary termination). The employer must pay garden leave compensation if enforcing against a termination-without-cause employee. Courts may apply heightened scrutiny when the employer initiated the termination, particularly for termination without cause or mass layoffs.
Practitioner Notes
Very employee-friendly. One of only two states (with MA) that require garden leave pay. Separate (much higher) threshold for independent contractors.