Washington state law now bars noncompete agreements across the state, a move championed by Rep. Liz Berry and signed by Gov. Bob Ferguson. The rule, effective June 30, 2027, removes the ability for employers to lock workers out of competing businesses for a set period.

Industries that have relied on restrictive covenants—technology, health care, finance, and sales—will see a shift. The law builds on a 2019 measure that capped noncompete use to employees earning over $126,859 and contractors above $317,147, tightening enforcement for high‑earning workers and their teams, ensuring broader workforce mobility.

Employers must notify current and former employees in writing about voided agreements by Oct. 1, 2027, and the new rule clarifies that nonsolicitation clauses remain permissible but must be narrowly defined. Legal counsel in Washington is already advising firms on compliance, noting the change aligns the state with California, North Dakota, Minnesota, and Oklahoma.

The ban signals a broader push to protect worker mobility and curb restrictive labor practices. By eliminating noncompete clauses, Washington aims to foster innovation and entrepreneurship, especially in high‑growth sectors. The legislation now joins a handful of states that have declared such covenants void, reshaping employment contracts across the region.