The bill amends chapter 49.62 RCW and related sections to ban noncompetition covenants for Washington-based workers and businesses, voiding all noncompetition covenants as of the effective date of the amended RCW 49.62.020 regardless of when they were entered. It defines “noncompetition covenant” broadly to include written or oral agreements that prohibit or restrain an employee or independent contractor from engaging in a lawful profession, trade, or business, and clarifies what is and is not a “nonsolicitation agreement.” The act prohibits employers from enforcing, attempting to enforce, threatening to enforce, representing that an individual is subject to, or entering into or attempting to enter into a noncompetition covenant. The bill creates and amends multiple RCW sections, repeals RCW 49.62.030, 49.62.040, and RCW 49.44.190, and expressly displaces conflicting tort, restitutionary, contract, and other state laws relating to employee or contractor competition, except it does not amend or modify chapter 19.108 RCW. Enforcement may be pursued by the attorney general and, if a court or arbitrator finds a violation, the violator must pay the aggrieved person the greater of actual damages or a statutory penalty of $5,000, plus reasonable attorneys’ fees, expenses, and costs. Employers are required to make reasonable efforts by October 1, 2027 to give written notice to current and former employees and independent contractors whose noncompetition covenants remain within their effective period that the covenants are void and unenforceable. The act takes effect June 30, 2027, and the amendments to RCW 49.62.010, .020, .080, and .090 apply to proceedings commenced on or after the effective date regardless of when the cause of action arose; proceedings already started before the effective date remain governed by the chapter as it existed before amendment. The legislature stated an intent not to interfere with tribal sovereignty over employment standards for work in Indian country by tribal employers. Some text in the provided extracts is incomplete or missing (including full amended language in parts of RCW 49.62.080–.100, the content of the new section referenced, and an incomplete sentence about covenants signed prior to January 1, 2020), so the full scope of certain amendments cannot be confirmed from these extracts. The bill passed the Senate on March 5, 2026 (30-19) and the House on March 9, 2026 (62-33).

If enacted, Washington employers will no longer be able to rely on noncompetition covenants to restrict worker mobility, and existing noncompetition agreements will be treated as void starting June 30, 2027. Employers must make reasonable efforts to notify current and former employees and independent contractors by October 1, 2027 if a historic noncompetition period would otherwise still be running, and they face potential liability if they enforce or try to enforce those covenants—either the employee’s actual damages or a $5,000 statutory penalty plus attorneys’ fees and costs. The attorney general can bring enforcement actions, and a separate statutory regime for broadcasting employees is repealed, meaning those workers lose that distinct rule. Practically, employers will likely need to change hiring, separation, and customer-protection practices, incur notification and legal-defense costs, and face increased risk of penalties or lawsuits if they continue to assert noncompetes. Workers and independent contractors should see greater ability to change jobs or take clients, while franchisors, performers, and performance venues should review contracts that might have relied on noncompetition language. Some implementation details in the bill text provided are unclear, including the full content of newly added or repealed sections and exactly how certain transitional rules will be applied in pending cases.