Washington State employers:
The state is banning worker non-competes starting in June 2027. Last week, Governor Bob Ferguson signed into law an expansion of the state’s already restrictive approach to non-competes.
The law states that, beginning June 2027, nearly all employee and independent contractor non-competes (including those signed prior to this effective date) are null and void. An exception remains for non-competes in connection with the sale of a business, and the law does not cover non-solicitation and confidentiality agreements.
Similar to the law that went into effect in California a few years ago, employers will also be required to provide written notice to current and former employees and independent contractors who have active non-competes, informing these individuals that the agreements are no longer enforceable. This notice must be provided by October 1, 2027.
The law includes a private right of action, allowing any person “aggrieved” by a violation to sue for the greater of actual damages or statutory damages of $5000, plus reasonable attorneys fees, expenses, and costs.