Washington Employment Contract Review
Washington is moving from a salary floor to a near ban. Under RCW 49.62, a non-compete is void unless the employee earns above an indexed threshold, $126,858.83 for 2026. In March 2026 the governor signed ESHB 1155, which prohibits most non-competes from June 30, 2027. Washington also requires pay ranges in job postings and protects inventions made on your own time.
Non-compete in Washington
Limited, enforceable only in narrow cases
Typical enforceable duration: 18 months
Are non-competes enforceable in Washington?
Here is Washington non-compete law in plain English, with the statute it rests on.
Until June 29, 2027, void unless pay exceeds $126,858.83 in 2026 ($317,147.09 for contractors), with written disclosure and a presumption against terms over 18 months. ESHB 1155 voids nearly all non-competes, including existing ones, from June 30, 2027.
Governing law: Washington RCW 49.62 (ESHB 1155 ban from June 30, 2027).
Whatever the label in your contract, Washington courts look at whether the restriction is reasonable in duration, geography, and scope. A nationwide, multi-year, whole-industry ban is far more likely to be narrowed or struck down than a narrow one.
Who owns what you invent in Washington?
Washington has a statute protecting inventions you create on your own time, with your own resources, unrelated to your employer's business, similar to California Labor Code §2870. A blanket assignment of "all inventions" that ignores this carve-out may be unenforceable as to your personal projects. Look for the statutory exclusion in your agreement.
Arbitration and class-action waivers in Washington
Washington generally follows the federal rule that arbitration agreements are enforceable. Before you sign, check whether the clause is mutual and whether it waives your right to a class or collective action, you are usually giving up the right to sue in court.
What rules apply to a Washington non-compete in 2026?
L&I sets the 2026 thresholds at $126,858.83 for employees and $317,147.09 for independent contractors, up from $123,394.17 and $308,485.43 in 2025. Below them, a non-compete is void. Above them, the employer must disclose the terms in writing no later than acceptance of the offer, a restriction longer than 18 months is presumed unreasonable, and a laid-off employee must be paid base salary for the enforcement period, less any new earnings.
ESHB 1155, signed March 23, 2026 as chapter 149, Laws of 2026, takes effect June 30, 2027. It voids noncompetition covenants, including existing ones, while still allowing narrowly drawn non-solicitation and confidentiality agreements and some sale-of-business covenants.
What does Washington require in job postings and pay?
Under the Equal Pay and Opportunities Act (RCW 49.58.110), employers with 15 or more employees must include a wage scale or salary range and a general description of benefits in postings. Since July 27, 2025, employers get five business days to fix a defective posting after notice, for postings until July 27, 2027, and may list a single fixed pay amount if that is all they offer.
When the job ends, RCW 49.48.010 requires final wages at the end of the established pay period, not on a later date chosen by the employer.
Washington sources checked 2026-10-09: Washington L&I, Non-compete agreements and 2026 thresholds · Washington Legislature, HB 1155 (2025-26) bill summary · Faegre Drinker, Washington State bans all noncompete agreements effective June 30, 2027 · Ogletree, Washington governor signs bill making key changes to Equal Pay and Opportunities Act. Laws change; confirm the current rule before relying on it.
What ClauseAudit checks in a Washington employment contract
- Non-compete enforceability under Washington law and whether the scope is reasonable
- IP / invention-assignment scope and any personal-time carve-out
- Mandatory arbitration and class-action waiver
- At-will terms and asymmetric notice or severance
- Equity vesting, cliffs, and bad-leaver forfeiture
- Discretionary bonus criteria and clawback provisions
Washington employment contract FAQ
Are non-competes enforceable in Washington?
In Washington, non-competes are enforceable only in limited circumstances under Washington RCW 49.62 (ESHB 1155 ban from June 30, 2027). Until June 29, 2027, void unless pay exceeds $126,858.83 in 2026 ($317,147.09 for contractors), with written disclosure and a presumption against terms over 18 months. ESHB 1155 voids nearly all non-competes, including existing ones, from June 30, 2027.
Can my Washington employer own inventions I make on my own time?
Washington is one of a handful of states with a statute protecting inventions employees make on their own time, with their own resources, unrelated to the employer's business, similar to California Labor Code §2870. A blanket IP-assignment clause that ignores that carve-out may be unenforceable as to those personal inventions.
Do I have to sign a mandatory arbitration agreement in Washington?
Washington generally follows the federal rule that arbitration agreements are enforceable. Check whether the clause is mutual and whether it waives your right to a class action, and know that you are usually giving up the right to sue in court. Everywhere in the US, the federal Ending Forced Arbitration Act lets you take sexual harassment and sexual assault claims to court even if you signed one.
How long can a non-compete last in Washington?
Courts in Washington have treated 18 months as the outer edge of what is typically reasonable for an employee. Duration is only one factor: geography and the scope of restricted activity are weighed alongside it, and a term that is reasonable for a senior employee may not be for a junior one.
What if I work in Washington but my employer is in another state?
It matters, because Washington's neighbours do not all treat non-competes the same way: Idaho (generally enforceable). Which state's law applies turns on the governing-law and venue clauses in your contract and on where the work is actually performed, so those two clauses are worth reading closely before you sign.
If a Washington non-compete is too broad, does it get narrowed or thrown out?
Courts may rewrite an overbroad restriction to something reasonable. That cuts against you: an employer has little to lose by drafting wide, because a court can pare the clause back rather than discard it. Negotiating the wording before signing matters more here than in states where an overbroad clause simply fails.
Is there anything specific to Washington worth knowing?
ESHB 1155 (ch. 149, Laws of 2026) voids nearly all non-competes, including existing ones, from 30 June 2027. Until then the 2026 earnings thresholds are $126,858.83 for employees and $317,147.09 for contractors.
What else should I check in a Washington employment contract?
Beyond the non-compete: how invention assignment is worded and whether it reaches work done on your own time; whether disputes go to arbitration and whether class actions are waived; whether notice periods are symmetrical between you and the employer; and how any equity vests, including what happens if you leave before a cliff.
Will my Washington non-compete still be valid after June 30, 2027?
Probably not for most workers. From June 30, 2027, ESHB 1155 makes noncompetition covenants void whenever they were signed, with exceptions such as qualifying sale-of-business covenants, and employers must notify affected workers by October 1, 2027. Until then, the earnings threshold and other RCW 49.62 rules continue to apply.
I was laid off in Washington. Can my employer still enforce my non-compete?
Only if it pays you. Under RCW 49.62, if an employee is terminated as the result of a layoff, a non-compete is void unless the employer pays compensation equal to the employee's base salary at termination for the enforcement period, minus any compensation earned through new employment during that time.
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Washington: the governing law
- Statute
RCW §§ 49.62.005-49.62.900- If the clause is too broad
- Courts may rewrite an overbroad restriction to something reasonable.
- Worth knowing
- ESHB 1155 (ch. 149, Laws of 2026) voids nearly all non-competes, including existing ones, from 30 June 2027. Until then the 2026 earnings thresholds are $126,858.83 for employees and $317,147.09 for contractors.
Statute and reformation approach from Beck Reed Riden LLP, Employee Noncompetes: A State-by-State Survey, 2026-01-21. Verify against the current text before relying on it.
How Washington compares with neighbouring states
Washington does not treat non-competes the same way as every state it borders, which matters when a contract names another state's law. 1 of its 2 neighbours take a different approach.
Nationally: 4 jurisdictions treat employee non-competes as void, 13 allow them only in limited circumstances, and 34 generally enforce them if reasonable.
State law summarized as of 2026-10-09; statutes change frequently. This is Automated educational information, not legal advice. Always consult a qualified Washington attorney before signing.