A bill that would ban employee noncompetes and related repayment agreements awaits signature from Governor Bob Ferguson, Bloomberg Law reported March 10.
The legislation would replace Washington’s current income-based restrictions surrounding noncompete agreements. Current statue declares noncompete void and unenforceable for lower- and middle-income workers, with a threshold of $126,859 for employees and $317,147 for independent contractors. The state now joins a growing list of those prohibiting nearly all noncompetes.
The bill also redefines noncompetes to include requirements that employees repay any benefit or compensation if they take a different position or start their own business. Legislators gave the bill final approval March 9.
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