Washington Noncompete Agreement: What's Included and Enforceability

Quick Facts — Noncompete Agreement Lawyers (Washington)

Is a Non-Compete Agreement Enforceable in Washington?

Yes. In Washington, employers are permitted to use non-compete agreements to protect legitimate business interests from former employees. A non-compete agreement is a restrictive contract that prevents employees from directly competing against or using confidential business information against former employees.

To ensure that the rights of employees are protected when entering non-compete agreements, Washington has enacted several laws that limit and regulate non-compete agreements. To be enforceable, a non-compete agreement must adhere to the following conditions:

  • Time of signing. Non-compete agreements must be signed at the time the employee accepts the job offer.
  • Acceptance after employment. If the agreement is presented to an employee after employment, there needs to be additional consideration to support the agreement.
  • Wage restriction. To participate in a non-compete agreement, the employee must make $100,000 annually or more.
  • Terminated employees. If the employee is terminated, the non-compete will only be enforced if the employer continues to pay the employee during the non-compete duration.
  • Independent contractors. Non-compete agreements will only be enforced against independent contractors if the job total exceeds $250,000 per year.
  • Performers. Performers like singers, comedians, and dancers, will only be restricted by non-compete agreements for up to three days.
  • Attorneys. Non-compete agreements cannot be enforced against attorneys.

In addition to these restrictions, to be enforceable, a non-compete agreement must be reasonable in the eyes of the court.

What is the “Three-Factor Test” for Non-Competes in Washington?

The “three-factor test” is used by courts in Washington to determine whether or not a non-compete agreement is reasonable. The three factors that courts consider are:

  1. Is the non-compete agreement necessary to protect the employer’s business?
  2. Does the non-compete impose undue hardship on the employee?
  3. Is the non-compete agreement injure the public by restricting necessary goods and services?

If the agreement cannot pass this test, it is likely that the court will rule the contract unenforceable.

How Long Does a Washington Non-Compete Agreement Last?

Under Washington statute, a non-compete agreement cannot exceed a term of 18 months. In certain circumstances, courts will allow a duration of more than 18 months only if the employer can present clear and convincing evidence that a term of more than 18 months is necessary to protect the employer’s business interests.

How Do You Get Around a Non-Compete Agreement in Washington?

In Washington State, non-compete agreements are generally disfavored by courts so there are a few ways to potentially get around these restrictive covenants.

  1. Employees can challenge the validity of the non-compete agreement if the terms are overly restrictive or impose undue hardship on the employee.
  2. Employees can attempt to negotiate with the employer if the non-compete agreement is overly restrictive to have it modified or narrowed.
  3. Some non-compete agreements contain loopholes or exceptions that can be exploited by the employee. For example, the agreement may only apply to a limited scope of job duties.
  4. Request that a court amends or “blue pencil” the agreement to make it reasonable. Washington courts have the power to modify overly broad or restrictive agreements to make them reasonable for the employee.

It's important to note that each non-compete agreement is unique and the enforceability of these agreements can vary depending on the specific circumstances.

What Voids a Washington Non-Compete Agreement?

Under Washington laws, the legislature has made it clear that workforce mobility is essential to economic growth within the state. Any non-compete agreement that goes against this principal may be void.

Non-compete agreements must adhere to all of the laws and regulations laid out by the state statutes. If any of these laws are violated or an employee is unfairly restricted by the contract, it will be deemed void.

Frequently Asked Questions

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Asked on Jun 3, 2023

Noncompete agreement and moonlighting?

I am an employee at a company that has recently asked me to sign a noncompete agreement. I am considering doing so, but I am concerned about whether or not the agreement would prevent me from taking on additional freelance work outside of my normal job. I am interested in moonlighting and need to know if a noncompete agreement would limit my ability to do so.

Curt L.

Answered Jun 6, 2023

If you moonlighting work is in the same business and same market, it is almost certainly prohibited by a noncompete agreement.

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Asked on Jan 19, 2025

Can my employer enforce a non-compete agreement if I was laid off due to COVID-19?

Can my former employer legally enforce the non-compete agreement I signed when I was hired, considering I was recently laid off due to the economic impact of COVID-19 and the agreement seems to restrict my ability to find new employment in my field? I have been actively seeking new job opportunities in the same industry, but potential employers are hesitant to hire me due to the non-compete agreement, which restricts me from working for competitors or starting my own business in the same field for a certain period of time. I want to understand if the non-compete agreement is still valid and enforceable given the circumstances of my layoff and the current job market conditions.

Merry K.

Answered Jan 28, 2025

I'm sorry, but your question is impossible to answer without reviewing your contract and knowing more about your type of job and compensation. Be aware that terms in such agreements are often found to be non-enforceable. You can start by reviewing the Washington State law on point: https://app.leg.wa.gov/rcw/default.aspx?cite=49.62&full=true

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Asked on Jun 4, 2023

Noncompete agreement and industry restrictions?

I recently signed a Noncompete Agreement with my current employer. I am looking to explore other opportunities in my industry and want to know what restrictions my noncompete agreement might have on me. I am interested in understanding the limitations of the agreement and if there are any potential implications of taking a job in the same industry.

Danielle G.

Answered Jul 11, 2023

In order to ascertain the limitations and implications, you would need to review the specific language of the agreement. If the non-compete is very broad, it's possible it would not be enforceable. In New York, for a non-compete agreement to be enforceable, it must be for a reasonable period of time and limited geographic scope. It also must protect the employer's legitimate interest. For example, the restrictions must protect confidential information or specialized skills you gained while on the job, or some other legitimate interest. If the agreement goes beyond those limitations, a court could find the non-complete to be unreasonable and unenforceable, in whole or in part. As to what restrictions your specific non-compete imposes (and the reasonableness of those restrictions), you would need to look at the specific language in the agreement. If you are unsure about the limitations, you should seek advice of counsel to help decipher the extent it would apply to your industry in general, and the likelihood it would be enforceable in court.

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Asked on Jun 29, 2023

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I recently left my job as an employee at a company that I had worked for for over a year. I was asked to sign a noncompete agreement when I began the job, which I did. I have since started a new job in the same industry as my former employer, which is in violation of the noncompete agreement. I am now wondering what the consequences of this breach of contract may be and am seeking legal advice.

Gregory F.

Answered Jul 6, 2023

I would be happy to schedule a paid telephone consultation with you to review the non-compete agreement, advise you on its scope and enforceability, and answer your questions. Please contact me via email at greg@fidlonlegal.com to discuss.

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Asked on May 21, 2023

Noncompete agreement time restrictions?

I am an entrepreneur who recently signed a Noncompete Agreement with a potential business partner, and I am looking to gain a better understanding of the time restrictions that are in place. I am concerned that the terms of the agreement may prevent me from pursuing other opportunities in the future and want to make sure I am aware of all the restrictions before making any decisions.

Gagandeep K.

Answered May 30, 2023

The non-compete agreement will likely specify the non-compete period/time restriction. If that is not obviously stated, you should consider having an attorney review the non-compete agreement. Typically, a non-compete agreement in a partnership or LLC places a geographic limitation for a certain time period such that the partner/member is prevented from carrying-on a similar business in a geographic area where the partnership/LLC has done and continues to do business. You can read more about non-compete agreements in California here: https://www.contractscounsel.com/t/us/noncompete-agreement/california.

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