Bill > SB5935

This bill amends existing laws regarding noncompetition covenants in Washington state. Key provisions include: 1. The bill emphasizes the importance of workforce mobility for economic growth and development, and states that agreements limiting competition or hiring may be unreasonable contracts of adhesion. It directs that the provisions in the law facilitating workforce mobility and protecting employees and independent contractors should be liberally construed. 2. The bill defines "noncompetition covenant" to include agreements that directly or indirectly prohibit the acceptance or transaction of business with a customer. 3. The bill makes noncompetition covenants void and unenforceable unless certain requirements are met, such as the employer disclosing the terms in writing, the employee's earnings exceeding a certain threshold, and compensation being provided if the employee is terminated due to a layoff. 4. The bill establishes a presumption that noncompetition covenants exceeding 18 months are unreasonable and unenforceable, unless the party seeking enforcement can rebut this presumption. 5. The bill prohibits provisions in noncompetition covenants that require adjudication outside of Washington state or allow the application of laws other than Washington state. 6. The bill provides for damages and attorney's fees if a noncompetition covenant is found to violate the law, and limits the ability to bring claims regarding covenants signed before January 1, 2020 that are not being enforced.

Business and Industry, Labor and Employment

https://app.leg.wa.gov/billsummary?BillNumber=5935&Year=2023&Initiative=false