Trade Secrets & Employee Mobility

On January 3, 2025, the Washington State Legislature introduced HB1155 (the “Bill”) that, if passed, would broaden the definition of a “noncompetition covenant” and prohibit all employer-employee noncompete agreements.  The Bill would also seek to clarify the definition of “non-solicitation agreement” under Washington law. On January 13, 2025, the Bill was referred to the House Labor & Workplace Standards Committee where it remains pending.

Washington’s statute restricting the use of noncompetition covenants took effect in 2020, and it was amended in important ways last year.  The current Bill proposes yet more amendments.

If passed, the Bill would amend Revised Code of Washington (RCW) Sections 49.62.005 and 49.62.010 to expand upon the definition of “noncompetition covenant” and notes that the provisions protecting employees and independent contractors must be construed liberally. Under the Bill, a “noncompetition covenant” includes:

Washington State is making a few important amendments to its existing noncompete statute.  The amendments go into effect on June 6, 2024.

Back on January 1, 2020, Washington state enacted a noncompete statute that set limits on the use of noncompetition agreements, including the following:

• Non-competition provisions for workers who earn less than certain annual thresholds: (currently $120,559.99 for employees and $301,399.98 for independent contractors) are unenforceable.
• Non-competes exceeding 18 months are unenforceable.
• Excluded from the definition of ...

On March 24, 2022, Washington State signed into law the Silenced No More Act (the “Act”), greatly restricting the scope of nondisclosure and nondisparagement provisions employers may enter into with employees who either work or reside in Washington State. Effective June 9, 2022, the Act prohibits employers from requiring or requesting that an employment agreement contain a provision:

not to disclose or discuss conduct, or the existence of a settlement involving conduct, that the employee reasonably believed under Washington state, federal or common law to be illegal discrimination, illegal harassment, illegal retaliation, a wage and hour violation, or sexual assault, or that is recognized as against a clear mandate of public policy….