In March 2026, Washington enacted one of the most sweeping noncompete bans in the country, signaling a continued shift in how states regulate employee mobility. The new law, set to take effect June 30, 2027, declares virtually all noncompete agreements void and unenforceable for both employees and independent contractors. 

This marks a dramatic departure from Washington’s prior framework, which allowed noncompetes for higher-income workers above certain salary thresholds. Lawmakers concluded those earlier limits “did not go far enough,” citing concerns about suppressed wages, reduced job mobility, and stifled innovation. 

Under the new statute, not only are future noncompetes banned, but existing agreements will also be invalidated — and adding the requirement for employers to notify workers that such provisions are no longer enforceable. Enforcement mechanisms are robust, including statutory damages and attorneys’ fees for violations. 

Importantly, the law still permits narrower tools such as confidentiality agreements and certain nonsolicitation provisions, as well as noncompetes tied to the sale of a business. 

California as the Model

While Washington’s move is significant, it is not entirely novel. California has long been known as a jurisdiction that broadly prohibits employee noncompete agreements. Along with a small handful of states, California treats most noncompetes as void as a matter of public policy, with only narrow exceptions (such as business sales).

This long-standing prohibition is often cited by policymakers as fostering the state’s dynamic labor market, particularly in industries like technology, by enabling employees to move freely between companies and even launch competitors.

A Broader National Trend

Washington’s new law reinforces a growing trend: states (and judges) are increasingly skeptical of noncompete agreements. While many states have taken incremental steps — such as banning noncompetes for low-wage workers — Washington now joins California in adopting a near-total ban. 

This shift in state-driven legislation has gained momentum in the wake of the failed effort by the Federal Trade Commission to impose a nationwide ban, which was blocked in court. In the absence of federal uniformity, states have become the primary drivers of reform. 

Why It Matters

Washington’s law underscores a key policy evolution: a growing movement towards protecting worker mobility. As more states reconsider their own laws, California’s once outlier stance increasingly looks like the blueprint for the future of noncompete regulation in the United States.