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Helena I. Poch Ciechanowski Patricia Tsipras
April 23, 2026
A mere six years after overhauling its non-competition law to implement wage thresholds and notice requirements, Washington State is once again reshaping its legal landscape for non-competition agreements. With the passage of House Bill 1155 (HB 1155), signed into law by Governor Bob Ferguson on March 23, 2026, employers should begin preparing for changes that will take effect on June 30, 2027. This new law represents a near-total ban on non-compete agreements for Washington-based employees and independent contractors, regardless of when the agreements were signed. Below, we outline the key provisions of HB 1155 and provide practical guidance for employers navigating this shift.
Effective June 30, 2027, all non-competition agreements will be void and unenforceable in Washington State, including agreements that were executed prior to the law’s effective date. Unless the agreement is the subject of pending litigation or arbitration claims (and complies with the old law), employers will no longer be able to enforce, attempt to enforce, or threaten to enforce non-compete agreements against employees or independent contractors working in Washington.
The law adopts a broad definition of “noncompetition covenant,” encompassing any provision that prohibits or restrains an individual from engaging in a lawful profession, trade, or business; any provision that prohibits the acceptance or transaction of business with a customer; and any provision that requires an individual to return, repay, or forfeit a right, benefit, or compensation as a result of engaging in a lawful profession, trade, or business.
By October 1, 2027, employers are required to make reasonable efforts to notify all current and former workers who have non-compete agreements still in effect that such agreements are void.
HB 1155 provides certain exceptions. Lawful nonsolicitation agreements;[1] confidentiality and nondisclosure agreements; covenants protecting trade secrets or inventions (Washington State has adopted the Uniform Trade Secrets Act, which provides a cause of action for the misappropriation of trade secrets); covenants signed in connection with the sale of a business, under certain circumstances; covenants in certain franchise agreements; and covenants in a written agreement to repay educational expenses, under certain circumstances, remain enforceable, provided they are properly structured and comply with existing laws.
Employees and independent contractors aggrieved by violations of the statute may bring private actions to recover damages, reasonable attorney’s fees, and costs. Additionally, the Washington Attorney General is authorized to enforce the statute. Damages for violation of the statute are either $5,000 or actual damages, whichever is higher.
With the implementation of HB 1155 on the horizon, employers should take proactive measures to ensure compliance and mitigate potential risks:
Washington’s HB 1155 marks a significant departure from the state’s previous approach to non-compete agreements, eliminating the wage-threshold framework (enacted in 2019) and imposing a near-total ban. Employers must act now to prepare for the law’s implementation, ensuring compliance while protecting their legitimate business interests through alternative legal mechanisms. By taking proactive steps, businesses can adapt to this new legal environment and maintain a competitive edge in Washington’s evolving labor market.
The authors of this article, Helena Ciechanowski and Patricia Tsipras, are members of the Bars of New Jersey and/or Pennsylvania. This article is designed to provide one perspective regarding recent legal developments, and is not intended to serve as legal advice in New Jersey, Pennsylvania, Washington, or any other jurisdiction, nor does it establish an attorney-client relationship with any reader of the article where one does not exist. Always consult an attorney with specific legal issues.
[1] Under the new law, employers are permitted to restrict employees from soliciting employees to leave the employer, and from soliciting the employer’s current or prospective customers, patients, or clients to move business away from the employer, provided that the employee’s relationship with the customer, patient, or client was “established or substantially developed” during the course of employment. These restrictions can extend for up to 18 months post-employment.
