The Washington noncompete ban goes effective June 30, 2027.

We have officially joined a growing number of states that have outlawed employment-based noncompete agreements outright. In March 2026, Governor Bob Ferguson signed House Bill 1155, a sweeping new law that will render noncompete agreements void and unenforceable come 2027. Having these agreements with current or former employees is an ongoing risk to the business that needs to be addressed.

For employers, this change will drastically alter how they protect their workforce, customer relationships, and confidential information. Those who rely on outdated noncompete language, or who fail to take proactive steps now, face significant legal and financial risk.

This article by Aaron Rocke explains how Washington got here, what the new law does, how it affects employers, and what employers should do now to stay compliant and protect their businesses.

How Washington Got Here: From Restrictions to a Full Ban

Washington has been moving away from noncompetes for years.

The 2019–2020 Framework: Severe Limits on Noncompetes

In 2019, Washington enacted Chapter 49.62 RCW, which took effect in 2020. That law did not ban noncompetes outright, but it imposed strict limitations, including:

• Salary thresholds (only high earning employees and contractors could be bound);
• Advance written notice requirements;
• An 18month presumptive limit on duration; and
• Penalties and attorney’s fees for unlawful agreements.

Under that statute, many noncompetes were already unenforceable, catching employers by surprise when they discovered which ones.

The 2024 Amendments: Narrowing the Loopholes

In 2024, the Legislature passed SSB 5935, which expanded the definition of a “noncompetition covenant” to include so called “nonhandling” and customer acceptance restrictions, and sharply narrowed what qualifies as a lawful non-solicitation agreement.

In April 2024, the Federal Trade Commission issued a regulation that would eliminate noncompete agreements for all but specific top jobs that were very highly paid, and pressure businesses to affirmatively notify people that their noncompete agreements were void. Before the regulations came into effect later that year, the court struck down the federal regulation. In 2025, the FTC abandoned its appeal of that case and announced that it would pursue a new, more balanced approach to noncompete agreements. Then, the Washington legislature went into its law-making session.

The 2026 Turning Point: A Statewide Ban

During the 2026 legislative session, state lawmakers went further. HB 1155 bans all employment based noncompete agreements, regardless of compensation level, job title, or industry. Governor Ferguson signed the bill into law on March 23, 2026.

What the New Washington Noncompete Ban Law Does

1. Noncompetes Will Be Void and Unenforceable

Starting June 30, 2027, Washington employers may not:

• Enter into new noncompete agreements;
• Enforce existing noncompetes;
• Threaten to enforce a noncompete; or
• Represent that a worker is bound by a noncompete.

This applies to employees and independent contractors alike.

2. The Law Applies Retroactively

Even noncompete agreements that were lawful when signed will become unenforceable if challenged after June 30, 2027. In other words, employers cannot rely on “grandfathered” agreements.

What Is Still Allowed (and What Is Not)

Although the law bans noncompetes, it does not eliminate all post‑employment restrictions.

Permitted Agreements (If Properly Drafted)

Employers may still use the following:

• Confidentiality agreements;
• Trade secret protection provisions;
• Narrowly tailored non-solicitation agreements;
• Limited education expense reimbursement agreements; and
• Noncompetes tied to the sale of at least 1% of a business.

Each of these has strict statutory requirements, particularly around scope, duration, and who may be covered. Working with a local employment attorney that is familiar with the new restrictions is the best route to avoid accidental noncompliance.

Agreements That Are Now Risky or Prohibited

Under HB 1155, a “noncompetition covenant” includes provisions that:

• Prohibit accepting business from former customers;
• Require forfeiture or repayment of compensation due to competition; and
• Restrict postemployment work in any indirect way.

Many clauses historically labeled as “non-solicitation” or “repayment” provisions may now qualify as unlawful noncompetes.

Employer Obligations: What You Must Do (and When)

Mandatory Notice Requirement

By October 1, 2027, employers must make reasonable efforts to notify:

• All current employees and contractors with noncompetes, and
• All former workers still within a restricted period.

The notice must clearly state that the noncompete agreement is void and unenforceable.

Many may assume that simply not enforcing the noncompete may be enough but, failure to provide notice could later raise red flags and weaken your defense if a legal claim arises. Saying nothing could read as “silently” enforcing the noncompete.

Attend our free webinar on April 16, 2026, to hear the Washington noncompete ban explained further and receive a notice template! Sign-up here to receive the registration link.

Employer Risks and Penalties

Washington’s new noncompete ban adds a new type of risk for employers.

Any “aggrieved person”, not just the employee, may bring a claim. Remedies include:

• Actual damages or statutory damages of $5,000 per violation (whichever is greater),
• Attorney’s fees and costs, and
• Injunctive relief.

Even attempting to enter into a prohibited noncompete can trigger liability.

What Employers Should Be Doing Now

Although the law does not take effect until 2027, employers should begin preparing immediately.

1. Audit Employment and Contractor Agreements

Identify and flag:

• Noncompete clauses,
• “Nonhandling” customer restrictions,
• Compensation forfeiture provisions, and
• Overbroad non-solicitation language.

2. Update Templates and Offer Letters

All employment agreements should be revised to remove noncompetes and ensure any remaining restrictions comply with Washington law.

If you would like a Washington employment attorney to draft or proof your new compliant employment agreements, contact us today.

3. Adapt Your Protection Strategy

With noncompetes gone, employers should focus on:

• Strong confidentiality and trade secret protections,
• Carefully drafted non-solicitation agreements, and
• Clear policies around data access, offboarding, and customer ownership.

Our team of attorneys are prepared to craft custom agreements and policies to protect your company with these new restrictions in mind.

4. Train Leadership and HR Teams

Your HR team and managers should understand what they can and cannot say about postemployment restrictions to avoid inadvertent violations. Humans are creatures of habit, without the knowledge of the new obligations and risks, managers may continue to reference previously enforced noncompetes in their hiring and onboarding conversations. Get ahead with informative conversations and training.

How This Interacts with Federal Law

The Federal Trade Commission adopted a nationwide noncompete rule in 2024, but that rule has now been abandoned. The FTC has pursued a few cases against larger employers, and will enforce anti-competitive laws on a more case-by-case basis using a more balance approach. Washington’s law stands independently and will apply regardless of the FTC rule’s ultimate fate.

For Washington employers, state law is now the controlling authority.

Need Help Navigating the Transition?

Washington’s noncompete ban is not just a compliance issue, it requires a strategic rethink of how employers protect their businesses.

We regularly help Washington employers:

• Review and revise employment agreements,
• Replace unlawful noncompetes with compliant alternatives, and
• Reduce litigation risk while protecting customer relationships.

If you would like an employment attorney’s help getting your agreements and policies up to par, contact us today!

Join Our Free Webinar on April 16, 2026

We’re also hosting a free 30-minute webinar about the Washington banning noncompetes for employers covering your:

• Obligations,
• Options, and
• Risks.

Register here to get the invite. Get your questions answered live by Aaron Rocke + get a free notice template at the end!

Final Takeaways of the Washington Noncompete Ban

From our perspective, the Washington noncompete ban eliminates the ‘gray area’ many employers relied on. Washington courts were already skeptical of noncompetes. HB 1155 removes any remaining doubts. Washington’s noncompete ban marks a fundamental shift in employment law. Employers who act early by updating agreements, training leadership, and implementing compliant alternatives will be best positioned to avoid liability and protect their businesses in the years ahead.

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