As business owners, many of us have relied on non-compete agreements as one tool to protect client relationships, confidential information, and investments in employee development. However, Washington employers should be aware that a significant change is coming.
Beginning June 30, 2027, Washington State will effectively prohibit nearly all employment-related non-compete agreements, regardless of when they were originally signed. Existing agreements that may be enforceable today will become void, and employers will need to adjust their retention and protection strategies accordingly.
What Is Changing?
In March 2026, Washington enacted House Bill 1155, dramatically expanding the state’s restrictions on non-compete agreements. The law provides that, effective June 30, 2027, virtually all non-compete agreements with employees and independent contractors will be unenforceable. Importantly, this applies not only to new agreements but also to agreements already in place.
The law also requires employers to make reasonable efforts to notify affected current and former workers by October 1, 2027, that their non-compete agreements are void and unenforceable.
What Can Still Be Protected?
The good news is that businesses are not left without options.
Washington’s new law continues to permit certain agreements and protections, including:
- Confidentiality agreements protecting trade secrets and proprietary information.
- Customer non-solicitation agreements, although these must be carefully drafted.
- Employee non-solicitation agreements that prevent employees from recruiting coworkers away from the company.
- Certain business sale-related non-compete agreements involving ownership interests.
- Limited educational expense repayment agreements that meet specific statutory requirements.
For many employers, these tools will become increasingly important after 2027.
Why Employers Should Start Planning Now
While the effective date may seem distant, businesses should begin reviewing their employment agreements well before 2027.
Questions to consider include:
- Do your current employment agreements contain non-compete provisions?
- Are your confidentiality and trade secret protections strong enough to stand on their own?
- Do your customer and employee non-solicitation agreements comply with current Washington law?
- Have managers been trained on protecting intellectual property and confidential information?
- Are there key employees whose retention depends on restrictive covenant provisions?
Employers that wait until 2027 may find themselves scrambling to update contracts, policies, and retention strategies.
Focus on Retention, Not Restriction
The trend across the country has been toward greater employee mobility. As a result, organizations are increasingly relying on:
- Competitive compensation and benefits
- Career development opportunities
- Employee engagement initiatives
- Strong workplace culture
- Well-documented confidentiality protections
- Carefully drafted non-solicitation agreements
The most effective strategy often isn’t preventing employees from leaving—it’s creating reasons they want to stay.
Action Items for 2026 and 2027
We recommend that Washington employers:
- Inventory all existing employment agreements.
- Identify any non-compete provisions currently in use.
- Review confidentiality, non-solicitation, and trade secret protections.
- Consult legal counsel regarding agreement revisions.
- Develop a plan for required employee notifications before the October 1, 2027 deadline.
- Reevaluate retention strategies for key employees and leadership positions.
Final Thoughts
Washington’s upcoming non-compete ban represents one of the most significant employment law changes affecting employers in recent years. While non-compete agreements will largely disappear from the employment landscape, businesses can still protect their interests through thoughtful policies, strong agreements, and proactive workforce planning.
The best time to prepare is now.
If you have questions about how these changes may affect your organization or would like assistance reviewing your employment agreements and HR policies, our team is here to help.