On Monday March 23rd 2026, Governor Bob Ferguson signed House Bill 1155 into law, banning nearly all employment noncompetition agreements for Washington workers. The law becomes effective June 30th 2027 and includes both employees and independent contractors.

The legislature stated the bill’s purpose within the new law: “Noncompetition covenants hinder innovation and entrepreneurship, suppress wages, reduce job mobility, and ultimately harm consumers and the economy. In 2019 the legislature took a critical step forward by banning the use of noncompetition covenants for lower-wage earners. This did not go far enough.” (HB 1155, Section 1)

What Has Changed With The New Washington State Non-Compete Ban

• Full Ban: The law declares all current employees and independent contractor noncompetition agreements void and unenforceable. It also prohibits employers from enforcing existing non-compete agreements.
• Broad Definition: The law defines a noncompete broadly. Any written or oral agreement that prohibits or restrains an employee or independent contractor from engaging in a lawful profession, trade, or business is banned.
• Prior Customers: The bill includes banning non-compete agreements that prohibit a worker from accepting or transacting business with a customer, as well as any agreement that requires a worker to return, repay, forfeit compensation or forfeit benefits as a penalty for engaging in lawful professions or business.
• Training Repayment Agreements (TRAPs) are Mostly Banned: The law effectively bans Training Repayment Agreement Provisions by defining non-competition agreements to include contractual terms that require employees (or contractors) repay, forfeit, or return compensation, benefits, or other rights for supposed competitive work post-employment.
• Equity Clawback Limitations: Contract terms regarding employee compensation, including equity forfeiture clauses, bonus clawbacks, and sign-on and retention-based repayment provisions, may be unenforceable if tied to post-employment competition.
• Employer Notification Required: By October 1, 2027, employers must make reasonable efforts to provide written notification to all current and former workers, or independent contractors, who remain subject to any non-compete agreement that the provision is void and unenforceable. Note that ex-employees and contractors are covered by this, and companies are expected to take reasonable efforts to send them notice along with existing employees.
• Retroactive: All existing noncompete agreements are void and unenforceable as of the effective date, regardless of when they were signed. Legal proceedings already filed before the effective date will be governed by the prior version of the law.
• Enforcement and penalties. Any person aggrieved by a no-compete agreement may bring a cause of action for actual damages, or statutory damages of $5,000, plus attorneys’ fees and costs. In addition, the statute prohibits employers from enforcing, attempting to enforce, threatening to enforce, or representing that any person is bound by a non-competition agreement.

Unchanged by the Law

• Non-solicitation agreements and non-compete agreements entered into in conjunction with the sale of a business are still enforceable, as long as the individual held at least a 1% ownership interest.
• Educational expense repayment agreements are still allowed, but only if repayment obligations ends within 18 months of hire, are prorated over that period, and are waived if the employee separates for a reason qualifying as good cause.
• Confidentiality and trade secret agreements are not affected.

Washington Current Non-Compete Laws

Washington’s prior noncompete code RCW 49.62, enacted in 2019, was already among the more restrictive in the country. Now it is further strengthened into an almost complete ban.

The 2019 Law (RCW 49.62):

Washington’s 2019 law prohibited noncompetition covenants for employees earning less than $100,000 in annual income (adjusted for inflation), and similarly prohibited non-competes for independent contractors earning less than $250,000.

• Courts were to assume any non-compete lasting over 18 months after termination was unreasonable and unenforceable.
• Noncompetes had to be disclosed in writing before or when a job offer was accepted.

What SHB 1155 Changes:

• The law eliminates the wage-threshold and makes virtually all non-compete agreements void and unenforceable.
• SHB 1155 expands the definition of nonsolicitation agreement from the prior law, which applied only to current customers — “prospective” customers were added to the definition, meaning that restrictions on prospecting are now treated as noncompetes.
• The law expands the ban to cover TRAPs and equity clawback provisions not addressed under the prior law.

Other States with Similar Laws

Washington joins California, Oklahoma, Minnesota and North Dakota in near-bans or bans on non-compete agreements:

• California has long been the most mentioned example, banning employment non-competes decades ago.
• North Dakota, Oklahoma, and Minnesota have enacted complete bans more recently.

Non-Compete and No-Poach Law Firm

If you believe you have been subjected to an illegal agreement, or have questions about your rights, we encourage you to schedule a consultation with one of our Schneider Wallace Cottrell Kim employment attorneys. Schneider Wallace Cottrell Kim LLP is a national law firm representing employees in a wide range of employment law cases, including class action lawsuits involving unpaid wages, overtime pay, and commissions.

Contact us at 1-800-689-0024 or info@schneiderwallace.com.