The proposed bill 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 that employers are prohibited from enforcing or attempting to enforce such agreements. The bill also mandates that employers provide written notice to current and former employees regarding the unenforceability of any noncompetition covenants by October 1, 2025. Additionally, the definition of nonsolicitation agreements is refined, emphasizing that they do not include agreements that prohibit business transactions with customers.

The bill introduces several new definitions and clarifications regarding noncompetition covenants, including specific provisions that outline what constitutes such agreements and the exceptions that apply. For instance, it specifies that noncompetition covenants do not include nonsolicitation agreements or confidentiality agreements. Furthermore, the bill repeals certain existing statutes related to noncompetition agreements, streamlining the legal framework surrounding these contracts. Overall, the legislation seeks to protect workforce mobility and ensure that employees and independent contractors are not unduly restricted in their professional endeavors.

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