Washington’s noncompetition law (RCW 49.62), which took effect in 2020, requires to meet certain conditions to impose noncompete obligations (click the links below for details). One of the conditions, the annual earnings thresholds, are adjusted annually for inflation by the Washington Department of Labor and Industries. As of 2021, the thresholds are $101,390 for employees and $253,475 for independent contractors. In 2022, these amounts will increase to $107,301.04 for employees and $268,252.59 for independent contractors.
If employers and entities continue to hire employees and independent contractors under noncompete obligations in 2022, it is recommended to review whether their earnings are exceeding these thresholds.
References:
- Washington’s New Noncompetition Law Takes Effect in 2020
- Washington’s Noncompetition Law – 2021 Thresholds Revised
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