Washington Modifies its Non-Compete Statute

Effective June 6, 2024, Washington’s non-compete statute relates not only to agreements prohibiting individuals from engaging in a lawful profession, trade or business, but also to agreements that directly or indirectly prohibit the acceptance or transaction of business with a customer generally. Non-solicitation, confidentiality and trade secret agreements continue to be allowable under the law, as well as covenants entered into by a party buying or selling a business so long as the person signing the agreement sells, buys or disposes of an interest of at least one percent of the business.

Further change to the statute clarified that the terms of a non-competition agreement must be disclosed to a prospective employee no later than the employee’s initial or written acceptance of employment.

Finally, any provision in a noncompete agreement that subjects a Washington-based employee to the law of a jurisdiction outside of Washington is void and unenforceable.

The full text of the statute and changes can be found here.