Washington’s Noncompetition Law – 2021 Thresholds Revised

2020-12-13

Washington’s noncompetition law, RCW 49.62, Noncompetition Covenants, took effect on January 1, 2020 (click the link below for details).  Under the law, the Washington Department of Labor and Industries is required to adjust annually for inflation the dollar amounts of annual earnings of an employee and independent contractor.  These amounts are the thresholds to evaluate the applicability of the noncompetition covenants on workers.

If employers impose noncompetition covenants on their employees or independent contractors, in 2020, their earnings had to be more than $100,000 and $250,000, respectively.  In 2021, the amounts will increase to $101,390 for employees and $253,475 for independent contractors (click here).

Employers may want to review the earnings of their employees and/or independent contractors who are under noncompetition obligations in light of the thresholds for 2021.

Reference: Washington’s New Noncompetition Law Takes Effect in 2020

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