Washington’s newly enacted House Bill 1155 represents a shift in the state’s approach to restrictive covenants, declaring all noncompetition agreements void and unenforceable, regardless of when they were executed. The legislation aims to promote competition, innovation, and workforce mobility by removing legal barriers that previously limited employees’ ability to change jobs or launch competing businesses. While noncompetition covenants are eliminated entirely, the law preserves other restrictive tools such as nonsolicitation and confidentiality agreements, which remain valid if properly drafted and narrowly tailored.
HB 1155 also removes long‑standing exceptions that previously allowed certain noncompetition covenants to stand, including income‑based enforceability thresholds and advance disclosure requirements. In addition, the bill strengthens statutory interpretation rules by requiring courts to liberally construe the law in favor of employee mobility. Employers must take affirmative steps to comply, including providing written notice to all current and former employees and independent contractors by October 1, 2027, informing them that their noncompetition covenants are now void.
The statute imposes significant penalties for violations. Employers are prohibited from entering into, enforcing, attempting to enforce, or even threatening to enforce a noncompetition covenant. Workers subjected to improper enforcement efforts may recover the greater of their actual damages or a $5,000 statutory penalty, in addition to attorneys’ fees, expenses, and costs. The Washington Attorney General is empowered to pursue relief on behalf of aggrieved individuals, signaling the state’s strong policy stance in favor of open labor markets. Organizations operating in Washington should review existing restrictive covenant practices and implement compliance measures promptly.