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Non-Compete Enforceability in Washington: Income Threshold and Strict Disclosure

Under RCW 49.62, Washington generally enforces non-competes only for higher earners — workers earning more than the statutory threshold, which the Department of Labor & Industries adjusts annually. Below the threshold, the statute generally treats non-competes as unenforceable.

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It depends on your income — Washington generally treats non-competes as void against employees who earn less than an annually-adjusted threshold, and enforceable above it only with several added requirements. Under RCW 49.62 — enacted in 2020 — the law asks first whether a worker earns enough to be subject to a non-compete at all; for workers above the threshold, the statute layers in procedural and substantive requirements. The specifics depend on your situation, and these figures change every year.

This framework is meaningfully different from California's blanket ban or Massachusetts's garden-leave model.

Are non-competes enforceable in Washington?

The points below describe what RCW 49.62 generally provides. The dollar figures are adjusted annually for inflation, so it often helps to confirm the current numbers at the source for the year that applies to you.

  • Income threshold: Under RCW 49.62.020 (employees) and RCW 49.62.030 (independent contractors), the law generally treats non-competes as void and unenforceable against people earning less than the annually-adjusted threshold. For 2025, the threshold was approximately $123,000+ for employees and $307,000+ for independent contractors (the Department of Labor & Industries adjusts these for inflation each year under RCW 49.62.040 — for 2026 L&I lists roughly $126,859 for employees and $317,147 for independent contractors; check the current figure for your year).
  • Disclosure timing: RCW 49.62.020 generally requires that pre-employment non-competes be disclosed in writing no later than the time of the job offer. For mid-employment non-competes, the statute generally requires independent consideration beyond continued at-will employment.
  • Duration cap: The statute generally presumes a non-compete longer than 18 months to be unreasonable; an employer would typically have to prove by clear and convincing evidence that a longer duration is reasonable.
  • Layoff carve-out: Where an employee is terminated as part of a layoff, RCW 49.62.020 generally makes the non-compete enforceable only if the employer pays the equivalent of the employee's base salary during the restricted period (less any earnings from other employment).
  • Choice of law and venue: The statute generally treats provisions requiring a Washington-based employee to adjudicate the non-compete outside Washington, or under non-Washington law, as void.
  • Statutory remedies: RCW 49.62.080 generally allows the employee to recover actual damages or a statutory penalty of $5,000, whichever is greater, plus attorney's fees, when an employer attempts to enforce a void non-compete.
  • Customer non-solicits — outside the income threshold: Customer non-solicitation agreements are generally not covered by the income-threshold rule, but are typically still subject to common-law reasonableness.

Scripts people sometimes use

These are examples of how people frame the relevant defects in writing. Whether any of them fits depends on your specific agreement and earnings.

When earnings were below the threshold:

"Under RCW 49.62, non-competes are generally unenforceable against employees earning less than the annually-adjusted threshold. My earnings during the relevant period were $[amount], which is below the [year] threshold of $[amount]. The non-compete in my agreement appears unenforceable."

When the disclosure timing may have been wrong:

"The non-compete in my employment agreement was first disclosed to me on [date], after I had already accepted the offer on [date]. RCW 49.62.020 generally requires that pre-employment non-competes be disclosed no later than the time of the offer. The agreement appears unenforceable for failure to meet the disclosure timing requirement."

When you were laid off:

"I was terminated as part of a reduction in force on [date]. Under RCW 49.62.020, a non-compete is generally enforceable against a laid-off employee only if the employer pays compensation equivalent to my base salary during the restricted period, less earnings from other employment. Please confirm whether the employer will provide that compensation or treat the non-compete as void."

What should you document?

  • The non-compete agreement, with the signature page and date
  • The job offer letter and the date you accepted
  • Your earnings (W-2, pay stubs) for the relevant period
  • The circumstances of separation (voluntary, terminated for cause, terminated without cause, laid off)
  • Any communications from the former employer about enforcement

When should you escalate?

If a former employer attempts to enforce a non-compete, here is what many people in Washington do:

  1. Consult a Washington employment attorney as soon as possible. The income-threshold and disclosure defects under RCW 49.62 are often dispositive, though how they apply depends on your situation.
  2. The statutory penalty ($5,000 or actual damages) plus attorney's fees that RCW 49.62.080 generally provides can make enforcement attempts economically costly for the former employer.
  3. The new employer often shares counsel or jointly defends.
  4. Seattle and other municipalities may have additional ordinances; it often helps to check local rules as well.

Washington's framework generally gives a clear floor — many workers are not subject to non-competes at all because they fall below the income threshold. For those above it, the procedural requirements the statute imposes (disclosure timing, layoff compensation) are common defects that can defeat enforcement. Your agreement and circumstances may differ.

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