Washington Non-Compete Agreement
Generate a non-compete agreement tailored to Washington law. Our AI incorporates WA-specific statutory requirements, disclosure obligations, and legal standards into every document.
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Washington Legal Requirements
Key WA statutes and obligations that apply to your non-compete agreement.
Requirements
- Washington Noncompetition Covenant Act (RCW 49.62, effective January 1, 2020)
- Income threshold: non-competes require $100,000+ annual earnings for employees; $250,000 for contractors
- Duration: presumptively unreasonable if over 18 months
- Employer must disclose non-compete terms before the accepted job offer
- Employer must pay garden leave (base salary) during the enforcement period
Restrictions & Limits
- Non-competes for employees earning under $100,000 are void and unenforceable
- Non-competes over 18 months require clear and convincing evidence of necessity
- No non-compete can restrict an employee laid off without pay from seeking new employment
Official Statute References
Primary Washington statutes governing this document type.
Washington Non-Compete Agreement FAQ
Common questions about non-compete agreements under Washington law.
What is Washington's income threshold for non-compete agreements?
Washington's Noncompetition Covenant Act (RCW 49.62) voids non-competes for employees earning under $100,000/year and independent contractors earning under $250,000/year. These thresholds adjust annually with CPI. Non-competes for below-threshold workers are void regardless of what the employee signed.
Does Washington require garden leave pay for non-competes?
Yes. Under RCW 49.62.020, employers must pay the employee base salary or the income threshold (whichever is higher) during the non-compete restriction period. This 'garden leave' requirement significantly increases the cost of enforcing non-competes and limits how many employers actually use them.
Can Washington employers use non-solicitation agreements?
Non-solicitation clauses (restricting solicitation of customers or co-workers) are not explicitly covered by the Noncompetition Covenant Act if they are narrower than full non-competes. Courts analyze them under the general rule of reasonableness. For employees below the income threshold, even customer non-solicitation clauses face scrutiny.
What happens if a Washington non-compete violates RCW 49.62?
A non-compete that violates the WNCA (e.g., applied to an employee earning below the threshold, or exceeding 18 months without justification) is void. The violating employer can be liable for the employee's attorney fees, costs, and any actual damages suffered. Courts can also impose a penalty equal to $5,000 or actual damages.
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Non-Compete Agreement by State
Laws vary significantly by state. Find the right form for your location.
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