Washington non-compete law: RCW 49.62, the 2026 thresholds and the 2027 ban

Washington is in the middle of a change. Until June 30, 2027, RCW 49.62 lets employers enforce a non-compete only against workers who earn above an indexed threshold, $126,858.83 for employees in 2026, and only if a list of disclosure and fairness conditions is met. On June 30, 2027, a 2026 law takes effect that voids every non-compete in Washington, whenever it was signed. For a recruiter that means two things in the meantime: the candidate's pay and paperwork decide whether a current Washington non-compete is even capable of being enforced, and a client's new-hire non-compete has a short shelf life.

Use non-compete questions for candidates for the general screen, and non-solicitation clauses for recruiters for agency and client clauses.

The law today: RCW 49.62 until June 30, 2027

RCW 49.62.020 makes a noncompetition covenant void and unenforceable in any of these cases:

• Late disclosure. The employer did not disclose the covenant's terms in writing "no later than the time of the initial oral or written acceptance of the offer of employment," and, if the covenant only becomes enforceable later because pay rises, did not say so. A covenant signed after employment starts needs independent consideration.
• Pay below the threshold. The employee's annualized earnings from the party seeking enforcement do not exceed the threshold, set at $100,000 in the statute and adjusted every year.
• Layoff without pay. The employee was laid off, unless enforcement includes compensation equal to their base salary for the restricted period, minus what they earn in new employment.

A covenant lasting more than 18 months after termination is presumed unreasonable unless the employer proves by clear and convincing evidence that a longer period is necessary. "Earnings" means W-2 box 1 compensation, annualized, or 1099-MISC payments for contractors.

The 2026 thresholds

Under RCW 49.62.040, the Department of Labor & Industries adjusts the amounts every September 30 for the following January 1. Its non-compete page lists:

When this page was checked, L&I's table did not yet show a 2027 figure. Because the full ban starts midway through 2027, a 2027 threshold would matter only for the first half of that year; check L&I before relying on any number.

Choice of law, penalties and moonlighting

• Washington law, Washington courts. RCW 49.62.050 voids any provision in a covenant signed by a Washington-based employee or contractor that requires adjudication outside Washington, deprives them of the chapter's protections, or applies another jurisdiction's law.
• Penalties. Under RCW 49.62.080, a violator pays the greater of actual damages or a $5,000 statutory penalty, plus attorneys' fees and costs. The attorney general can also act.
• Second jobs. RCW 49.62.070 bars restricting an employee earning less than twice the state minimum wage from having an additional job, subject to safety and scheduling exceptions.
• Franchise no-poach. RCW 49.62.060 bars franchisors from restricting franchisees from soliciting or hiring each other's or the franchisor's employees.

What changes on June 30, 2027

Chapter 149, Laws of 2026, takes effect June 30, 2027. Its intent section says the Legislature "hereby intends to ban noncompetition covenants for all Washington-based workers and businesses." The new versions of the statute, already published on the Legislature's site, provide:

• Everything is void. "Beginning on June 30, 2027, all noncompetition covenants are void and unenforceable regardless of when the parties entered into the noncompetition covenant."
• New violations. It becomes a violation to enforce, attempt or threaten to enforce a non-compete, to tell a worker they are subject to one, or to enter into or attempt to enter into one.
• Notice. By October 1, 2027, employers must make reasonable efforts to notify current and former employees and contractors whose covenant is still within its time period that it is void.
• Wider definition. A noncompetition covenant will also include provisions requiring a worker to repay or forfeit compensation or benefits because they go to work in a lawful profession, with a limited carve-out for agreements to repay educational expenses.
• Narrower non-solicits. A customer non-solicit only counts as a "nonsolicitation agreement" if the employee established or substantially developed a direct relationship with the customer, patient or client through their work, and the restriction expires no later than 18 months after termination. A clause stopping the acceptance of business from a customer is not a non-solicit.

Non-solicits today

Until June 30, 2027, a "nonsolicitation agreement" is excluded from the definition of a non-compete and means an agreement stopping the employee, after leaving, from soliciting employees to leave or "any current customer" to reduce business with the employer. The current definition of a noncompetition covenant already includes an agreement that "directly or indirectly prohibits the acceptance or transaction of business with a customer," so a so-called non-solicit that bars serving customers who come on their own is treated as a non-compete.

Recruiting a Washington candidate

Pay matters to the analysis, but Washington also bans asking for salary history, so do not ask a candidate what they earn to test the threshold. See the Washington salary history ban guide. Let the hiring company's counsel work from the agreement and whatever the candidate chooses to share with them.

WASHINGTON CANDIDATE — restrictive agreements

1. "Have you signed a non-compete, a non-solicit, or a confidentiality
    agreement that could affect this role?"
2. "When did you first see the non-compete: before you accepted the
    offer, or after you started?"
3. "Does it restrict contacting clients, serving clients who come to
    you, or hiring colleagues?"
4. "How long does it last after you leave?"
5. "Are you an employee or an independent contractor there?"
6. "Could you share it with the hiring company's lawyer, as far as the
    agreement allows?"
Always: "We don't want client lists or confidential information from
your current employer."

• Do not ask about current pay to work out whether they clear $126,858.83. That is the client's counsel's job, with information the candidate volunteers to them.
• Do not tell candidates "it will be void next year anyway." Until June 30, 2027 the current conditions apply, and the agreement's timing still matters for disputes started before then.
• Do tell the hiring company if the agreement names another state; RCW 49.62.050 may override that clause for a Washington-based worker, but counsel should confirm.

When the client is the Washington employer

A Washington client that still wants a non-compete from a new hire before June 30, 2027 has to meet the current rules: the terms disclosed in writing no later than the candidate's first acceptance of the offer, pay above the threshold, and a duration a court will not presume unreasonable. That makes the offer stage the recruiter's concern. If the client's paperwork includes a non-compete, make sure the candidate sees it with the offer, not on their first morning, because a late disclosure is one of the ways the covenant becomes void.

It is also worth asking the client whether it plans to use one at all. A covenant signed in late 2026 will be void from June 30, 2027 under the new law, and from that date even telling a worker they are subject to one becomes a violation. Many clients will decide the paperwork is not worth the risk; that is their decision, with their counsel, but you can put the question on the table.

Federal status

The FTC rule is not part of the picture as of October 2026. The FTC's Noncompete Rule page notes the August 20, 2024 court order, the Commission voted on September 5, 2025 to accede to the vacatur, and a February 12, 2026 notice removed it from the Code of Federal Regulations. Washington's 2026 law refers to that history in its findings. The FTC still brings individual cases, such as its April 2026 Rollins order.

Checklist

• Timing of disclosure captured: before acceptance, or after starting.
• Employee or contractor status noted, since the thresholds differ.
• No salary history questions asked to test the threshold.
• Customer "non-solicits" that bar accepting business flagged as possible non-competes.
• Client offer templates reviewed now for the June 30, 2027 ban and the October 1, 2027 notice duty.
• L&I threshold and RCW 49.62 re-checked before relying on this page; licensing in the Washington staffing agency license guide.