If you've ever asked an employee to sign a noncompete agreement in Washington State, it's time to pay attention. Governor Ferguson recently signed SHB 1155 into law — and it's one of the most significant shifts in employment law the state has seen in years.
The short version: starting June 30, 2027, nearly all noncompete agreements in Washington will be unenforceable. Here's what changed, what it means, and what you should do about it.
So What Actually Changed?
Washington wasn't exactly noncompete-friendly before this law. The state had already placed income thresholds and other restrictions on these agreements in recent years. But SHB 1155 goes further — it's essentially a full ban.
Under the new law, employers can no longer prevent workers from taking jobs with competitors after they leave. The noncompete clauses that many businesses have treated as standard boilerplate in offer letters? Void. And not just going forward — employers are also required to notify current and former employees by October 1, 2027 that any existing noncompete agreements they signed are no longer valid.
That notification requirement is the part most businesses aren't thinking about yet.
Why Did This Happen?
Washington has been watching its startup and tech ecosystem closely, and policymakers made a deliberate call here. Noncompetes have long been criticized for suppressing wages, limiting worker mobility, and — ironically — slowing innovation by trapping talent at incumbent companies.
California banned noncompetes decades ago, and its tech economy is often held up as evidence that the sky doesn't fall when workers can move freely. Washington is betting on the same outcome.
What This Doesn't Change
It's worth being clear about what's still on the table. This law targets noncompetes specifically — it does not eliminate non-solicitation agreements (restricting poaching of clients or colleagues), non-disclosure agreements (protecting trade secrets and confidential information), or non-disparagement clauses.
If protecting proprietary information or client relationships is your real concern, those tools still exist. You may just need to lean on them more deliberately going forward.
Action Steps for Employers
You have time — but not as much as it feels like. Here's what to do before the deadlines hit.
Now Through 2026
Audit your existing employment agreements. Know exactly which employees have signed noncompetes and what those agreements say. Talk to your employment attorney about what protections you actually need, and whether NDAs or non-solicitation agreements can cover the gap.
Before June 30, 2027
Update your offer letter and employment agreement templates to remove noncompete language. Don't wait until the last minute — HR teams and legal counsel will be slammed across the state as the deadline approaches.
Before October 1, 2027
Send the required notifications to employees and former employees informing them that any noncompete they signed is now void. Document that you sent these notices. This is a compliance step, and you'll want the paper trail.
The Bigger Picture
This law doesn't exist in a vacuum. Washington is in the middle of a broader policy shift around its business and startup ecosystem — from new tax planning considerations for high earners to ongoing regulatory changes affecting employers of all sizes.
For most businesses, the noncompete ban isn't a crisis. It's a nudge to rethink how you retain talent. If your retention strategy relied heavily on legal restrictions on where people can work next, this is a good moment to invest in the things that actually keep great employees around: culture, compensation, and growth opportunity.
Effective date: June 30, 2027 | Employee notification deadline: October 1, 2027
This post is for general informational purposes and does not constitute legal advice. Consult an employment attorney for guidance specific to your situation.
