Noncompetition law in the context of employment (including independent contractor status) has the following general guidelines and is quite limited.
The Washington legislature has defined a noncompetition covenant (or provision) to mean one in which an employee or independent contractor is prohibited or restrained from engaging in a lawful profession, trade, or business of any kind.” However, the term does not include nonsolicitation agreements or confidentiality agreements.
In Washington, the covenant is void and unenforceable if the employee makes less than $100,000 (in 2020), $101,390 in 2021, $107,301.04 in 2022 or $116,593.18 in 2023. These thresholds are adjusted annually.
Washington also prohibits the enforcement of noncompetition agreements against independent contractors who are making less than $250,000 in 2020. This amount is also adjusted annually, and the 2023 threshold is $291,483.95.
Such an agreement signed by a Washington employee or independent contractor is also void and unenforceable if it requires that person to adjudicate a noncompetition agreement outside of the state of Washington.
