Washington Enacts Sweeping Ban on Non-Compete Agreements

Overview

• Governor Bob Ferguson signed HB 1155 on March 23, 2026, creating a near-total ban on non-compete contracts for employees and independent contractors in Washington.
• Beginning June 30, 2027, employers may not enter into, enforce, try to enforce, or claim a Washington-based worker is bound by a non-compete, no matter when it was signed.
• The statute defines a non-compete broadly, sweeping in clauses that block joining a competitor, limit doing business with customers, or require repayment or forfeiture of pay if a worker takes a rival job.
• Exceptions are narrow, including up to 18-month non-solicits tied to relationships the worker built, confidentiality and trade-secret limits, covenants in a sale where the signer owns at least 1%, certain franchise terms, and tightly limited education-expense repayment plans.
• Employers must send written notice by October 1, 2027 that covered non-competes are void, and violations can bring private lawsuits or attorney general action with at least $5,000 per worker plus attorneys’ fees.