The proposed legislation 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 entered into, and that employers are prohibited from enforcing or attempting to enforce such agreements. The bill also mandates that by October 1, 2025, employers must notify current and former employees, as well as independent contractors, that any noncompetition covenant they were required to sign is void. 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 and nonsolicitation agreements. It specifies that nonsolicitation agreements are not prohibited but must be narrowly construed, and it outlines various forms that noncompetition covenants can take, including those that restrict performers from engaging in lawful performances. The legislation also repeals certain existing statutes related to noncompetition agreements, thereby streamlining the legal framework surrounding these contracts. Overall, the bill 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