Washington State’s noncompete law, RCW 49.62, makes most noncompete agreements unenforceable unless the employer clears a strict set of requirements. For 2026, the agreement is void from the start unless the worker’s annualized earnings exceed $126,858.83 for employees or $317,147.09 for independent contractors.1Washington State Department of Labor & Industries. Non-Compete Agreements Even above those floors, the employer must have disclosed the terms in writing by the time you accepted the job, the restriction cannot exceed 18 months, and a laid-off worker must be paid during the restricted period. Violations carry a minimum $5,000 penalty plus attorney fees.
2026 Earnings Thresholds
The dollar floor is the first thing to check. A noncompete is void unless the worker’s annualized earnings from the employer trying to enforce it exceed the current year’s threshold:
- Employees: $126,858.83
- Independent contractors: $317,147.09
The Department of Labor & Industries recalculates these numbers each year based on inflation, publishing the new figures on September 30 to take effect the following January 1.1Washington State Department of Labor & Industries. Non-Compete Agreements
What matters is the threshold in effect when the employer tries to enforce the agreement, not the one in place when you signed. An employee who earned $130,000 at signing but later moved to part-time work or took a pay cut below the current year’s floor can no longer be held to the noncompete.
Written Disclosure and Consideration
Clearing the earnings threshold is not enough. The employer must have disclosed the noncompete’s terms in writing no later than the time you accepted the job offer. If the agreement is designed to become enforceable only later—once your pay crosses the threshold—the employer must have specifically told you that at hiring.2Washington State Legislature. RCW 49.62.020 – When Void and Unenforceable
If you were already on the payroll when the employer asked you to sign, the rules tighten further. The noncompete must be supported by independent consideration, meaning something new of real value: a raise, a promotion, a substantial bonus, or an equity grant. Continued employment alone does not count.2Washington State Legislature. RCW 49.62.020 – When Void and Unenforceable Employers that slip a noncompete into a routine annual review without attaching a tangible benefit produce an agreement that fails on arrival.
Duration Cap of 18 Months
Any noncompete lasting longer than 18 months after the end of employment is presumed unreasonable and unenforceable. An employer can try to rebut that presumption, but only with clear and convincing evidence that a longer term is necessary to protect a legitimate business interest.3Washington State Legislature. RCW 49.62 – Noncompetition Covenants That standard sits well above the usual civil-case burden, and courts rarely approve extensions. Most enforceable noncompetes in the state run 12 months or less.
Agreements the Law Does Not Cover
Several restrictive agreements people often lump in with noncompetes fall outside RCW 49.62 and are judged under separate rules:4Washington State Legislature. RCW 49.62 – Noncompetition Covenants
- Non-solicitation clauses that only bar you from poaching the employer’s clients or coworkers.
- Confidentiality and trade-secret agreements.
- Covenants given by someone selling at least a one percent ownership interest in a business.
- Covenants a franchisee enters as part of a compliant franchise sale.
The non-solicitation carve-out is the one that trips workers up most often. An employer who cannot meet the earnings threshold can still protect customer relationships through a reasonable non-solicitation clause, because those are governed by common-law standards rather than RCW 49.62.
Protections for Laid-Off and Lower-Wage Workers
If you are laid off, the noncompete survives only if the employer keeps paying you. The required amount equals your base salary at termination for the entire restricted period, reduced by whatever you earn at a new job during that window. If the payments stop at any point, the restriction dissolves immediately.2Washington State Legislature. RCW 49.62.020 – When Void and Unenforceable
Separately, employers cannot restrict any worker earning less than twice the state minimum wage from taking a second job, freelancing, or running a side business.5Washington State Legislature. RCW 49.62.070 – Employees Having an Additional Job When Authorized With Washington’s 2026 minimum wage at $17.13 per hour, this protection covers anyone earning under about $34.26 per hour, roughly $71,260 annually for a full-time schedule.6Washington State Department of Labor & Industries. Minimum Wage Two narrow exceptions apply: the employer can restrict outside work that poses genuine safety concerns or that interferes with reasonable scheduling. Common-law duties of loyalty and conflict-of-interest obligations also remain in place.
Out-of-State Employers and Choice of Law
If you work in Washington, Washington’s rules apply. A contract provision that tries to move the dispute to another state or apply another state’s law is void.7Washington State Legislature. RCW 49.62.050 – Unenforceable Provisions An employer headquartered in Texas or Delaware cannot draft around RCW 49.62 by inserting a choice-of-law clause pointing elsewhere.
Penalties for an Illegal Noncompete
A worker harmed by an unenforceable noncompete can sue and recover the greater of actual damages or a $5,000 statutory penalty, plus reasonable attorney fees and costs.8Washington State Legislature. RCW 49.62.080 – Violation of This Chapter Relief Remedies Fee-shifting matters here. Even if your actual losses are small, the attorney-fee award makes it financially practical to challenge an agreement that violates the law, and courts can grant additional equitable relief as needed.
Older Agreements
The law applies to any proceeding commenced on or after January 1, 2020, no matter when the agreement itself was signed. An employer trying to enforce a pre-2020 noncompete must still satisfy every current requirement, including the earnings threshold and the written disclosure rule. A worker cannot sue over an old noncompete that is just sitting in a personnel file, though. The claim arises only when the employer actively enforces or explicitly leverages it.3Washington State Legislature. RCW 49.62 – Noncompetition Covenants
Where Federal Law Stands
The Federal Trade Commission tried to impose a nationwide ban on most noncompetes in 2024, but the rule failed in court. The FTC withdrew its appeals in September 2025 and formally removed the Non-Compete Clause Rule from the Code of Federal Regulations in February 2026. No federal ban is in effect. The FTC has said it may still challenge individual agreements under Section 5 of the FTC Act, but noncompete enforceability remains governed by state law, and Washington’s framework stands as written.