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HB1155 • 2026
Prohibiting noncompetition agreements and clarifying nonsolicitation agreements.
This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.
Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.
Noncompetition agreements
These notes stay tied to the official amendment files and metadata from the legislature.
Plain English: 1155-S.E AMS ENGR S5381.E ESHB 1155 - S COMM AMD By Committee on Labor & Commerce ADOPTED AND ENGROSSED 03/05/2026 Strike everything after the enacting clause and insert the 1 following: 2 "NEW SECTION.
0 • Labor & Commerce
Plain English: 1155-S.E AMS LC S5381.1 ESHB 1155 - S COMM AMD By Committee on Labor & Commerce ADOPTED AS AMENDED 03/05/2026 Strike everything after the enacting clause and insert the 1 following: 2 "NEW SECTION.
1482 • Berry
Plain English: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 1155-S AMH BERR TANG 184 1 - Official Print By Representative Berry 1155-S AMH BERR TANG 184 SHB 1155 - H AMD 1482 ADOPTED 02/10/2026 On page 1, after line 6, insert the following: "NEW SECTION.
1483 • Schmidt
Plain English: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 1155-S AMH SCHM TANG 202 1 - Official Print By Representative Schmidt EFFECT: Specifies that an employer must make "reasonable efforts" to send the required written notices regarding the status of any applicable noncompetition covenants to employees, former employees, and independent contractors.
1484 • Schmidt
Plain English: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 1155-S AMH SCHM TANG 203 1 - Official Print By Representative Schmidt 1155-S AMH SCHM TANG 203 SHB 1155 - H AMD 1484 NOT ADOPTED 02/10/2026 On page 3, beginning on line 30, after "Unless" strike all material through "RCW 49.62.040" on line 33 and insert ")) regardless of when the parties entered into the noncompetition covenant, unless the employee's earnings from the party seeking enforcement, when annualized, exceed ((one hundred thousand dollars)) $350,000 per year.
1485 • Schmidt
Plain English: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 1155-S AMH SCHM TANG 204 1 - Official Print By Representative Schmidt EFFECT: Excludes an agreement to pay for educational expenses between an employer and a current or potential employee from the definition of "noncompetition covenant." 1155-S AMH SCHM TANG 204 SHB 1155 - H AMD 1485 ADOPTED 02/10/2026 On page 3, line 3, after "business;" strike "or (((e)))" and insert "((or (e)))" On page 3, line 4, after "19.100.020(1)" insert "; or (vi) an agreement to pay for educational expenses between an employer and a current or potential employee" --- END
1486 • Schmidt
Plain English: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 1155-S AMH SCHM TANG 198 1 - Official Print By Representative Schmidt EFFECT: For purposes of noncompetition covenants or nonsolicitation agreements restraining employees, specifies that the term "employee" applies only to covenants or agreements with employees who are natural people.
1487 • Schmidt
Plain English: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 1155-S AMH SCHM TANG 200 1 - Official Print By Representative Schmidt EFFECT: Specifies that a "noncompetition covenant" does not include any covenant requiring an employee to adhere to the common law duty of loyalty to the employer during the term of the employment, thereby exempting those covenants from the restrictions in current law and the underlying bill.
1488 • Schmidt
Plain English: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 1155-S AMH SCHM TANG 201 1 - Official Print By Representative Schmidt EFFECT: Specifies that the term "customer" also includes a patient for purposes of any nonsolicitation agreement between a health care entity and a provider prohibiting the provider from soliciting a current "customer" of the entity to cease or reduce doing business with the entity.
315 • Berry
Plain English: 1155-S AMH BERR H1757.1 SHB 1155 - H AMD 315 By Representative Berry NOT CONSIDERED 04/27/2025 On page 1, after line 6, insert the following: 1 "NEW SECTION.
459 • Abbarno
Plain English: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 1155-S AMH ....
460 • Corry
Plain English: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 1155-S AMH ....
850 • Liias
Plain English: 1155-S.E AMS LIIA S5927.1 ESHB 1155 - S AMD TO LC AMD (S-5381.1/26) 850 By Senator Liias PULLED 03/04/2026 On page 3, line 30, after "RCW 19.100.020(1);" insert " (vi) a 1 covenant entered into by an airline pilot with annual cash 2 compensation earnings, including annual salary and target cash bonus, 3 of $200,000 or more; (vii) a written agreement to repay educational 4 expenses for certifications or licenses required for airline pilots 5 and mechanics;" 6 Renumber the remaining subsection consecutively and correct any 7 internal references accordingly.
864 • Pedersen
Plain English: 1155-S.E AMS PEDE S5943.1 ESHB 1155 - S AMD TO LC COMM AMD (S-5381.1/26) 864 By Senator Pedersen ADOPTED 03/05/2026 On page 3, line 40, after "current" insert "or prospective"1 On page 4, beginning on line 1, after "employer to" strike all 2 material through "business" on line 2 and insert "(( cease or reduce 3 the extent to which it is doing business)) shift business away from"4 On page 4, line 2, after "employer" insert " if the employee 5 established or substantially developed a direct relationship with the 6 customer, patient, client, or prospect through the employee's work 7 for the employer and the prohibition expires no later than 18 months 8 following termination of employment" 9 EFFECT: Modifies the definition of nonsolicitation agreement, with respect to the prohibition on an employee's solicitation of a customer, patient, or client by including an agreement that prohibits the solicitation of any current or prospective customer, patient, or client of the employer to shift business away from the employer if the employee established or substantially developed a direct relationship with the customer, patient, client, or prospect through the employee's work for the employer and the prohibition expires no later than 18 months following termination of employment, rather than an agreement that prohibits solicitation of any current customer, patient, or client of the employer to cease or reduce the extent to which it is doing business with the employer.
889 • Harris
Plain English: 1155-S.E AMS HARR S5894.1 ESHB 1155 - S AMD TO LC COMM AMD (S-5381.1/26) 889 By Senator Harris NOT ADOPTED 03/05/2026 On page 3, beginning on line 26, after "interest" strike all 1 material through " ((or (c)))" on line 29 and insert " ((, but only if 2 the person signing the covenant purchases, sells, acquires, or 3 disposes of an interest representing one percent or more of the 4 business; or (e))); (v)" 5 EFFECT: Exempts agreements to acquire or sell goodwill or an ownership interest from the term "noncompetition covenant," regardless of whether the person signing the agreement owns one percent or more of the business.
891 • King
Plain English: 1155-S.E AMS KING S5895.1 ESHB 1155 - S AMD TO LC COMM AMD (S-5381.1/26) 891 By Senator King NOT ADOPTED 03/05/2026 On page 4, after line 8, insert the following: 1 "(6) "Senior level executive" means an employee who is:2 (a) An executive, officer, or holds a position with significant 3 managerial or fiduciary responsibility, such as a chief executive 4 officer, chief operating officer, chief financial officer, chief 5 credit officer, president, executive vice president, managing 6 partner, or similar role;7 (b) Among the highest levels of management of an employer; and8 (c) Involved in, or has influence over, major decision-making 9 processes of an employer, including major organizational decisions."10 On page 4, line 12, after " ((is))" insert ", other than those for 11 senior level executives," 12 On page 5, line 6, after " worker." insert " This subsection does 13 not apply to senior level executives." 14 On page 5, line 11, after " unenforceable." insert " This 15 subsection does not apply to senior level executives."16 EFFECT: Excludes specified senior level executives from the ban on noncompetition covenants and related provisions.
892 • King
Plain English: 1155-S.E AMS KING S5888.1 ESHB 1155 - S AMD TO LC COMM AMD (S-5381.1/26) 892 By Senator King NOT ADOPTED 03/05/2026 On page 5, line 22, after "of" strike "five thousand dollars" and 1 insert "((five thousand dollars)) $100 up to $5,000"2 EFFECT: Modifies the statutory penalty for violations of the laws related to noncompetition covenants from $5,000 to instead be between $100 and $5,000.
893 • King
Plain English: 1155-S.E AMS KING S5889.3 ESHB 1155 - S AMD TO LC COMM AMD (S-5381.1/26) 893 By Senator King NOT ADOPTED 03/05/2026 On page 5, at the beginning of line 25, strike all material 1 through " leveraged.))" on line 34 and insert " (3) ((If a court or 2 arbitrator reforms, rewrites, modifies, or only partially enforces 3 any noncompetition covenant, the party seeking enforcement must pay 4 the aggrieved person the greater of his or her actual damages or a 5 statutory penalty of five thousand dollars, plus reasonable 6 attorneys' fees, expenses, and costs incurred in the proceeding.7 (4))) A cause of action may not be brought regarding a 8 noncompetition covenant ((signed prior to January 1, 2020, )) if the 9 noncompetition covenant is not being enforced or explicitly 10 leveraged." 11 EFFECT: Maintains existing law that a cause of action may not be brought regarding a noncompetition covenant if the covenant is not being enforced or explicitly leveraged and removes the limitation to covenants signed prior to January 1, 2020.
1st substitute bill substituted.
Noncompetition agreements
AN ACT Relating to encouraging competition and economic growth by 1
prohibiting noncompetition agreements and clarifying nonsolicitation 2
agreements; amending RCW 49.62.005, 49.62.010, 49.62.020, 49.62.080, 3
49.62.090, and 49.62.100; and repealing RCW 49.62.030, 49.62.040, and 4
49.44.190. 5
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:6
Sec. 1. RCW 49.62.005 and 2024 c 36 s 1 are each amended to read 7
as follows: 8
The legislature finds that: 9
(1) Workforce mobility is important to economic growth and 10
development; 11
(2) Agreements limiting competition or hiring restrain trade and 12
commerce and may be contracts of adhesion that may be unreasonable; 13
and 14
(3) The provisions in this chapter facilitating workforce 15
mobility and protecting employees and independent contractors ((need 16
to)) must be liberally construed and exceptions narrowly construed. 17
In addition, nonsolicitation agreements, which prohibit an employee 18
from actively soliciting current customers or employees away from the 19
employer, are not prohibited; however, the definition of 20
nonsolicitation agreement must be narrowly construed.21
H-0335.1
HOUSE BILL 1155
State of Washington 69th Legislature 2025 Regular Session
By Representatives Berry, Walen, Ramel, Reed, Ryu, Alvarado, Mena,
Macri, Farivar, Fosse, Simmons, Peterson, Goodman, Pollet, Kloba,
Ormsby, Salahuddin, and Hill
Prefiled 01/03/25. Read first time 01/13/25. Referred to Committee
on Labor & Workplace Standards.
p. 1 HB 1155
Sec. 2. RCW 49.62.010 and 2024 c 36 s 2 are each amended to read 1
as follows: 2
The definitions in this section apply throughout this chapter 3
unless the context clearly requires otherwise. 4
(1) (("Earnings" means the compensation reflected on box one of 5
the employee's United States internal revenue service form W-2 that 6
is paid to an employee over the prior year, or portion thereof for 7
which the employee was employed, annualized and calculated as of the 8
earlier of the date enforcement of the noncompetition covenant is 9
sought or the date of separation from employment. "Earnings" also 10
means payments reported on internal revenue service form 1099-MISC 11
for independent contractors.12
(2))) "Employee" and "employer" have the same meanings as in RCW 13
49.17.020. 14
(((3))) (2) "Franchisor" and "franchisee" have the same meanings 15
as in RCW 19.100.010. 16
(((4))) (3)(a) "Noncompetition covenant" includes every written 17
or oral covenant, agreement, or contract ((by which)) that prohibits 18
or restrains an employee or independent contractor ((is prohibited or 19
restrained)) from engaging in a lawful profession, trade, or business 20
of any kind. 21
(b) "A noncompetition covenant" also includes a covenant, 22
agreement, or contract between a performer and a performance space, 23
or a third party scheduling the performer for a performance space, 24
that prohibits or restrains the performer from engaging in a lawful 25
performance.26
(c) A "noncompetition covenant" also includes an agreement that 27
directly or indirectly prohibits the acceptance or transaction of 28
business with a customer. 29
(d) A "noncompetition covenant" also includes any provision in an 30
agreement that threatens, demands, requires, or otherwise effectuates 31
that an individual return, repay, or forfeit any right, benefit, or 32
compensation, as a consequence of the individual engaging in a lawful 33
profession, trade, or business of any kind.34
(e) A "noncompetition covenant" does not include: (((a))) (i) A 35
nonsolicitation agreement; (((b))) (ii) a confidentiality agreement; 36
(((c))) (iii) a covenant prohibiting use or disclosure of trade 37
secrets or inventions; (((d))) (iv) a covenant entered into by a 38
person purchasing or selling the goodwill of a business or otherwise 39
acquiring or disposing of an ownership interest, but only if the 40
p. 2 HB 1155
person signing the covenant purchases, sells, acquires, or disposes 1
of an ownership interest representing one percent or more of the 2
business; or (((e))) (v) a covenant entered into by a franchisee when 3
the franchise sale complies with RCW 19.100.020(1).4
(((5))) (4) "Nonsolicitation agreement" means an agreement 5
between an employer and employee that prohibits solicitation by an 6
employee, upon termination of employment: (a) Of any employee of the 7
employer to leave the employer; or (b) of any current customer of the 8
employer to cease or reduce the extent to which it is doing business 9
with the employer. An agreement that directly or indirectly prohibits 10
the acceptance or transaction of business with a customer is not a 11
"nonsolicitation agreement."12
(((6))) (5) "Party seeking enforcement" means the named plaintiff 13
or claimant in a proceeding to enforce a noncompetition covenant or 14
the defendant in an action for declaratory relief.15
Sec. 3. RCW 49.62.020 and 2024 c 36 s 3 are each amended to read 16
as follows: 17
(1) ((A)) Beginning on the effective date of this section, all 18
noncompetition covenants ((is)) are void and unenforceable((:19
(a)(i) Unless the employer discloses the terms of the covenant in 20
writing to the prospective employee no later than the time of the 21
initial oral or written acceptance of the offer of employment and, if 22
the agreement becomes enforceable only at a later date due to changes 23
in the employee's compensation, the employer specifically discloses 24
that the agreement may be enforceable against the employee in the 25
future; or26
(ii) If the covenant is entered into after the commencement of 27
employment, unless the employer provides independent consideration 28
for the covenant;29
(b) Unless the employee's earnings from the party seeking 30
enforcement, when annualized, exceed one hundred thousand dollars per 31
year. This dollar amount must be adjusted annually in accordance with 32
RCW 49.62.040;33
(c) If the employee is terminated as the result of a layoff, 34
unless enforcement of the noncompetition covenant includes 35
compensation equivalent to the employee's base salary at the time of 36
termination for the period of enforcement minus compensation earned 37
through subsequent employment during the period of enforcement.38
p. 3 HB 1155
(2) A court or arbitrator must presume that any noncompetition 1
covenant with a duration exceeding eighteen months after termination 2
of employment is unreasonable and unenforceable. A party seeking 3
enforcement may rebut the presumption by proving by clear and 4
convincing evidence that a duration longer than eighteen months is 5
necessary to protect the party's business or goodwill. )) regardless 6
of when the parties entered into the noncompetition covenant.7
(2) It is a violation of this chapter for an employer to enforce, 8
attempt to enforce, or threaten to enforce against an employee or 9
worker any agreement prohibited by this chapter, to represent that 10
the employee or worker is subject to an agreement prohibited by this 11
chapter, or to enter into or attempt to enter into an agreement with 12
an employee or worker that is prohibited by this chapter.13
(3) By October 1, 2025, an employer must provide to current 14
employees, former employees, and independent contractors, who were 15
required to enter into noncompetition covenants or whose contracts 16
include noncompetition covenants, a written notice that the 17
noncompetition covenant is void and unenforceable.18
Sec. 4. RCW 49.62.080 and 2024 c 36 s 5 are each amended to read 19
as follows: 20
(1) Upon a violation of this chapter, the attorney general, on 21
behalf of a person or persons, may pursue any and all relief. A 22
person aggrieved by a ((noncompetition covenant )) violation of this 23
chapter may bring a cause of action to pursue any and all relief 24
provided for in subsection((s)) (2) ((and (3))) of this section.25
(2) If a court or arbitrator determines that a ((noncompetition 26
covenant violates )) person has violated this chapter, the violator 27
must pay the aggrieved person the greater of his or her actual 28
damages or a statutory penalty of five thousand dollars, plus 29
reasonable attorneys' fees, expenses, and costs incurred in the 30
proceeding. 31
(((3) If a court or arbitrator reforms, rewrites, modifies, or 32
only partially enforces any noncompetition covenant, the party 33
seeking enforcement must pay the aggrieved person the greater of his 34
or her actual damages or a statutory penalty of five thousand 35
dollars, plus reasonable attorneys' fees, expenses, and costs 36
incurred in the proceeding.37
(4) A cause of action may not be brought regarding a 38
noncompetition covenant signed prior to January 1, 2020, if the 39
p. 4 HB 1155
noncompetition covenant is not being enforced or explicitly 1
leveraged.))2
Sec. 5. RCW 49.62.090 and 2024 c 36 s 6 are each amended to read 3
as follows: 4
(1)(((a))) Subject to (((b))) subsection (2) of this 5
((sub))section, this chapter displaces conflicting tort, 6
restitutionary, contract, including contract principles relating to 7
discharge by assent or alteration, and other laws of this state 8
pertaining to liability for competition by employees or independent 9
contractors with their employers or principals, as appropriate.10
(((b))) (2) This chapter does not amend or modify chapter 19.108 11
RCW. 12
(((2) Except as otherwise provided in this chapter, this chapter 13
does not revoke, modify, or impede the development of the common 14
law.))15
Sec. 6. RCW 49.62.100 and 2019 c 299 s 11 are each amended to 16
read as follows: 17
((This chapter applies to all proceedings commenced on or after 18
January 1, 2020, )) (1) RCW 49.62.010, 49.62.020, 49.62.080, and 19
49.62.090 apply to all proceedings commenced on or after the 20
effective date of this section, regardless of when the cause of 21
action arose. ((To this extent, this chapter applies retroactively, 22
but in all other respects it applies prospectively. )) A cause of 23
action may not be brought based on a violation of RCW 49.62.020 prior 24
to the effective date of this section.25
(2) Legal proceedings commenced before the effective date of this 26
section will be governed by this chapter as amended prior to the 27
effective date of this section.28
NEW SECTION. Sec. 7. The following acts or parts of acts are 29
each repealed:30
(1) RCW 49.62.030 (When void and unenforceable against 31
independent contractors) and 2019 c 299 s 4; 32
(2) RCW 49.62.040 (Dollar amounts adjusted) and 2019 c 299 s 5; 33
and 34
p. 5 HB 1155
(3) RCW 49.44.190 (Noncompetition agreements for broadcasting 1
industry employees — Restrictions— Trade secrets protected) and 2005 c 2
176 s 1. 3
--- END ---
p. 6 HB 1155