The Washington State Legislature enacted a new law that goes into effect January 1, 2020, and applies to existing and future noncompetition covenants, including “every written or oral covenant, agreement, or contract by which an employee or independent contractor is prohibited or restrained from engaging in a lawful profession, trade, or business of any kind.”

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In May 2016, the Department of Labor (“DOL”) issued its revised overtime rule, which increased the overtime salary limit from $23,660 to $47,476. The final rule can be found here. The rule is specific to employees who are considered exempt under the executive, administrative and professional exemptions. The new rule will become effective December 1, 2016.

We previously wrote about House Bills 2406 and 2931, which would significantly change the use of non-compete agreements in Washington. At the end of the session, both bills went to the House “X” file, which made it likely that neither would be passed this session. At the beginning of the Special Session both bills were reintroduced. However, the House adjourned the special session without taking further action.

In Washington, many employers use non-compete agreements to protect their businesses.  While Washington courts have always imposed limits on their validity, they are frequently enforced by the courts.  In Olympia, there are two bills currently under consideration that would impose further restrictions on the use of non-competes in Washington.