Washington State’s Legislature Rains on Non-Compete Critics’ Parade Yet Again

For the third year in a row, the Washington state legislature failed to pass non-compete legislation, declining to take action on two separate bills that would have severely restricted employers’ ability to enforce former employees’ non-competition agreements. The House bill would have prohibited non-compete agreements for certain classes of employees, such as those working fewer than 40 hours per week, employees earning less than 200 percent of Washington’s minimum wage, independent contractors, and employees working a second job. The Senate bill was even more restrictive, and would have largely imitated California’s extremely restrictive non-compete laws. That bill would have prohibited all non-competes except for those cases in which an employee sells an ownership interest in a business entity to a buyer operating a competitive business; it would have also provided certain exemptions for those disassociating from business partnerships. Although both…

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