Washington Just Turned Many Non-Solicitation Agreements into Illegal Non-Competes: Tips on How You Can Still Protect Your Business
Washington state law just changed in a way that might have made your company’s non-solicitation agreements unenforceable and illegal. Recent amendments to the state non-compete statute took effect on June 6 and significantly changed both the statute and existing case law when it comes to which non-solicitation agreements can be enforced by employers. The new law also broadens the definition of prohibited non-compete agreements. You will need to re-visit your employment agreements to ensure they are compliant with the amended statute. Quick Background on the Washington Statute Washington’s non-compete statute has been in effect since 2020. To be valid and enforceable under the law, such an agreement must: Disclose the terms of the agreement before employment begins, or else be accompanied by independent consideration; Allow for adjudication of disputes in Washington (choice of law provisions for other states render the agreement void); and Involve an employee earning overcompensation fl...