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Can I require employees to sign non-compete agreements in Washington? What are the requirements?

Here is what you need to know about non-compete agreements in Washington:

Non-compete agreements in Washington

Washington State has strict laws regarding non-compete agreements. RCW 49.62.020 states that non-compete agreements are unenforceable unless they meet certain requirements. Specifically, non-compete agreements must be:

  • Reasonable in duration, geographic scope, and type of employment or line of business;
  • Necessary to protect the employer’s business or goodwill; and
  • Not unduly burdensome on the employee’s ability to earn a living.

Requirements for non-compete agreements

To be enforceable, non-compete agreements in Washington must meet the following requirements:

  • The agreement must be supported by independent consideration, such as a signing bonus or promotion;
  • The agreement must be in writing and signed by both parties;
  • The agreement must be provided to the employee at least two weeks before the start of employment or at the time of a subsequent bona fide advancement;
  • The agreement must be disclosed to prospective employees before they accept an offer of employment;
  • The agreement must be narrowly tailored to protect the employer’s business interests; and
  • The agreement must not be against public policy.

Conclusion

In Washington, non-compete agreements are generally unenforceable unless they meet certain requirements. Employers must ensure that their non-compete agreements are reasonable in duration, geographic scope, and type of employment or line of business, and not unduly burdensome on the employee’s ability to earn a living. Additionally, non-compete agreements must be supported by independent consideration, in writing, and signed by both parties. Finally, the agreement must be narrowly tailored to protect the employer’s business interests and not be against public policy. [4.1][4.2]

Source(s):
Jurisdiction

Washington