The proposed legislation aims to enhance competition and economic growth in Washington State 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 entered into, and it is a violation for employers to enforce or threaten to enforce such covenants. The bill also mandates that employers provide written notice to current and former employees, as well as independent contractors, by October 1, 2026, informing them that any noncompetition covenant they were required to sign is void.

Additionally, the bill introduces new definitions and clarifications regarding nonsolicitation agreements, emphasizing that these agreements, which prevent employees from soliciting customers or other employees, are not prohibited but must be narrowly construed. The legislation repeals several existing statutes related to noncompetition agreements and adjusts the legal framework to ensure that any violations can lead to statutory penalties and recovery of damages. The act is set to take effect on 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