From the Law Office of Kira M. Rubel on non-compete agreements:
Governor Inslee just signed a bill which seriously curtails employee non-compete agreements. This law will go into effect in January 2020.
Under the new law, non-compete provisions are limited as follows:
- They are only enforceable against employees who earn more than $100K (or independent contractors who earn more than $250k);
- The employer must disclose the terms of the non-compete at the time of hiring. If the non-compete is implemented later, the employer is required to compensate the employee;
- If the employee is terminated, the employer is required to compensate the employee at her base salary for however long the non-compete lasts (Yikes!!);
- The non-compete provision must provide for venue in Washington; AND
- The non-compete may only last 18 or fewer months.
Violations of this new law will carry force – the aggrieved employee or independent contractor can seek either her actual damages or $5,000 in statutory damages, as well as reimbursement of her attorneys’ fees, expenses, and costs. The attorneys’ fee provision is included to entice plaintiffs to bring their lawsuits with attorneys who will take their case on a contingency basis. This lowers the barrier of entry to litigating these types of suits.
If you enjoy reading boring legislation, the link to the bill is here.
I am a long time California attorney, where non-compete agreements have been illegal since 1872. But, as in California, Washington businesses are still able to protect their valuable internal secrets and intellectual property. Therefore, employment contracts which prohibit solicitation of your employees and clients are still permitted, as are terms which protect your confidential information, trade secrets, and inventions.
My advice? Please review your existing employment contracts very carefully! You have until January 2020 to make changes, but I advise a sooner-than-later approach. Please contact me if you want any more information about this law, help in updating your agreements, or just want to say hello.
Cheers, from your friendly neighborhood attorney,
Kira
Tel. 253-251-2955
