Washington’s non-competition agreement law governs when a non-competition agreement may be considered valid or enforceable under state law.
Earnings Thresholds
One aspect to the restrictions in Washington’s non-competition law is related to earnings. Only employees or independent contractors who earn more than the thresholds established by law can be held to non-competition agreements. If an employee or independent contractor has earnings less than the threshold specified under law, the non-compete agreements is considered void and unenforceable under RCW 49.62. These thresholds are established in RCW 49.62.020 (for employees) and RCW 49.62.030 (for independent contractors).
Pursuant to RCW 49.62.040, the Department of Labor & Industries must adjust these thresholds for inflation each year. The adjustments for 2021 are below.
| Statutory Dollar Adjustments | Pre-Adjusted (2020) Thresholds | 2021 Thresholds | 2022 Calculated Thresholds | 2023 Calculated Thresholds |
|---|---|---|---|---|
| RCW 49.62.020 | $ 100,000.00 | $101,390.00 | $107,301.04 | $116,593.18 |
| RCW 49.62.030 | $ 250,000.00 | $253,475.00 | $268,252.59 | $291,482.95 |