Overview
- Governor Bob Ferguson signed ESHB 1155 on March 23, 2026, setting a June 30, 2027 start date for a near‑total ban on noncompete covenants for employees and independent contractors.
- All existing noncompetes become void on the effective date regardless of when they were signed, and employers must send written notices to affected current and former workers by October 1, 2027.
- The law defines noncompetes broadly to include clauses that bar accepting or transacting business with a customer and provisions that force workers to repay or forfeit pay or benefits as a consequence of competing.
- Narrow exceptions remain for confidentiality and trade‑secret protections, tightly drafted nonsolicitation clauses tied to a worker’s direct relationships and capped at 18 months, sale‑of‑business covenants when at least 1% ownership changes hands, certain franchise terms, and limited educational‑expense repayment agreements that meet strict conditions.
- Employers may not enforce, attempt to enforce, or suggest a worker is bound by a noncompete after June 30, 2027, with violations triggering the greater of $5,000 or actual damages plus attorneys’ fees, a private right of action, potential attorney general enforcement, and heightened class‑action risk that is prompting contract audits and rewrites.