Non-compete agreements have long been a controversial tool used by employers to restrict where employees can work after leaving a job. In Washington, however, those restrictions are soon becoming a thing of the past as Washington state has enacted a near-total ban on non-compete agreements under House Bill 1155. The bill was signed by Governor Bob Ferguson on March 23, 2026, and will go into effect on June 30, 2027.

What Is House Bill 1155?

HB 1155 (HB 1155) is a sweeping piece of legislation that virtually bans all non-compete agreements between companies and employees and independent contractors in Washington.

Unlike prior laws that limited non-competes based on salary thresholds or duration, HB 1155 goes much further. The law provides that:

• All non-compete agreements are void and unenforceable, regardless of when they were signed,
• Employers are prohibited from enforcing or even threatening to enforce such agreements, and
• Workers may recover damages, including statutory penalties and attorney’s fees, if an employer violates the law.

The law reflects a clear legislative intent to promote worker mobility, competition, and economic growth.

What Counts as a “Non-Compete Agreement” Under the New Law?

HB 1155 adopts a broad definition of what qualifies as a non-compete agreement. It includes any written or oral agreement that restricts an employee or independent contractor from working in a lawful profession, trade, or business. It also includes any agreement that prevents a worker from doing business with customers, and one that imposes financial penalties for taking a new job.

This expansive definition of non-competes is designed to prevent employers from using creative drafting to get around the ban.

Are Any Restrictions Still Allowed?

Yes, but they are limited.

HB 1155 clarifies that certain employer protections remain valid. These protections include:

agreements in limited circumstances,

• Confidentiality agreements and trade secret protections,
• Sale of business agreements,
• Franchise agreements, and
• Educational expense repayment agreements.

Please note that HB 1155 says that each of the above agreements must be narrowly tailored and cannot function as a disguised non-compete.

New Obligations for Employers and Penalties

Employers in Washington, especially those in Seattle’s competitive job market, should be aware of new compliance requirements. The new law requires employers to provide written notice to current and former employees that any existing non-compete agreements are void. Employers also have to avoid including non-compete language in future contracts , and they must refrain from threatening enforcement of invalid agreements.

If an employer attempts to enforce a void non-compete or fails to provide the required notice, they can be sued by the worker or the Attorney General. Violators must pay the greater of actual damages caused to the worker or a $5,000 statutory penalty, plus reasonable attorneys’ fees and costs.

What the New Law Means for Employees

For employees, HB 1155 is a significant shift in power. If the law applies, you may:

• Change jobs without fear of being sued for violating a non-compete,
• Start a competing business, and
• Challenge any employer who attempts to enforce a non-compete.

This increased mobility is expected to lead to higher wages, more job opportunities, and greater entrepreneurial activity.

Contact Nolan Lim Law Today

Nolan Lim Law is a dedicated Seattle employment and civil rights law firm committed to protecting the rights of employees across Washington state and nationwide. If you have questions about how HB 1155 affects your employment rights, our experienced Seattle employment attorneys can help further inform you of the new Washington law. Contact us now and let us provide you with the protection you deserve.

* Main image at top by freepik