Washington’s ban on noncompetes (Chapter 149, Laws of 2026) does not leave employers with nothing. It preserves a short, narrowly drawn set of protections. The catch is that each one is defined tightly, and the statute tells courts to construe these exceptions narrowly. Here is what survives after June 30, 2027—and where the traps are.
Nonsolicitation—but genuinely narrow
A nonsolicitation agreement is still allowed, but chapter 49.62 RCW defines it strictly. It can prohibit a departing employee from soliciting the employer’s employees to leave, or from soliciting current or prospective customers the employee personally established or substantially developed a relationship with—and the restriction may last no longer than 18 months after termination. Crucially, a clause that “directly or indirectly prohibits the acceptance or transaction of business with a customer” is not a nonsolicitation agreement; the statute treats it as a banned noncompete. A no-serve clause is not a workaround.
Confidentiality and trade secrets
Confidentiality agreements and covenants protecting trade secrets and inventions remain fully available, and the act does not touch Washington’s Uniform Trade Secrets Act (chapter 19.108 RCW). For most businesses, this is where protection now lives: a well-drafted confidentiality agreement plus real trade-secret hygiene does more work than a noncompete ever did.
Sale of a business
A covenant tied to buying or selling the goodwill of a business—or otherwise acquiring or disposing of an ownership interest—still holds, but only if the person signing it owns at least one percent of the business. This is the exception that keeps M&A deals workable, and it is examined in a separate post on buying and selling a business after the ban.
Franchise and educational-expense carve-outs
Two narrower exceptions remain: a franchisee covenant where the franchise sale complies with RCW 19.100.020(1), and a written agreement to repay out-of-pocket educational expenses that expires within 18 months, is prorated, and releases the employee on a good-cause separation.
What to do
- Rebuild your restrictive covenants around confidentiality and trade-secret protection as the primary tools.
- If you use nonsolicitation, cap it at 18 months and tie it to relationships the employee actually developed—delete any “do not accept business” language.
- In any deal, make sure the seller or key person signing a covenant holds at least one percent of the business.
The building blocks that remain are narrower and more technical than a noncompete, which makes careful drafting the difference between a protection that holds and one that becomes a violation.
If you have questions about protecting your business without an enforceable noncompete and related services, you can reach us at martinkreshon.com or call (206) 929-0609. You can also find reviews for Martin on Google and Avvo.