The proposed bill aims to enhance competition and economic growth in Washington by prohibiting noncompetition agreements and clarifying the terms of nonsolicitation agreements. Key amendments include the assertion that noncompetition covenants are void and unenforceable, regardless of when they were established, and it is illegal for employers to enforce or threaten to enforce such agreements against employees or workers. The bill also mandates that employers provide written notice to current and former employees regarding the unenforceability of any noncompetition covenants by October 1, 2026.

Additionally, the bill introduces new definitions and clarifications regarding nonsolicitation agreements, which are not prohibited but must be narrowly construed. It specifies that a nonsolicitation agreement does not include any agreement that prohibits the acceptance or transaction of business with a customer. The bill repeals several existing statutes related to noncompetition agreements and establishes penalties for violations, including a statutory penalty of $5,000 for aggrieved individuals. The effective date for the bill is set for June 30, 2026.

Statutes affected:
Original Bill: 49.62.005, 49.62.010, 49.62.020, 49.62.080, 49.62.090, 49.62.100
Substitute Bill: 49.62.005, 49.62.010, 49.62.020, 49.62.080, 49.62.090, 49.62.100