Washington’s noncompetition law (RCW 49.62) requires employers and businesses to comply with certain requirements in imposing noncompete obligations on Washington-based employees and independent contractors. Every year the Washington Department of Labor and Industries adjusts annual earnings thresholds for inflation. Effective January 1, 2023, the thresholds will increase from $101,390 to $116,593.18 for employees and from $253,475 to $291,482.95 for independent contractors.
If employers and businesses continue to hire employees and independent contractors under noncompete obligations in 2023, it is recommended to review whether their earnings are exceeding these thresholds.
- Washington’s New Noncompetition Law Takes Effect in 2020
- Noncompetition Enforceability Thresholds for 2023: WA Department of Labor and Industries
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