# Washington non-compete law and salary threshold

> Counteroffer · Answers · non-compete
> Source: https://trycounteroffer.com/answers/washington-non-compete-law


**Short answer:** Washington's non-compete statute (RCW 49.62) makes employee non-competes enforceable only against employees earning more than $116,594.17 in 2024 (indexed annually). The cap is 18 months. Garden leave is required if enforced against a laid-off employee. Notice must be given at the offer of employment, or with additional consideration if added later. Agreements failing any of these requirements are unenforceable.

## On this page
- [The salary threshold](#the-salary-threshold)
- [Duration and scope limits](#duration-and-scope-limits)
- [Notice requirements](#notice-requirements)
- [Garden leave for laid-off employees](#garden-leave-for-laid-off-employees)
- [Independent contractor threshold](#independent-contractor-threshold)

## The salary threshold

Washington's Reasonable Restrictions on Noncompetition Covenants statute, RCW 49.62, took effect January 1, 2020 and applies broadly. Employee non-competes are enforceable only if the employee earns more than the statutory threshold, indexed annually for inflation.

For 2024, the employee threshold is $116,594.17 in annualized earnings. The threshold rises each year. If an employee's earnings drop below the threshold during employment, the non-compete becomes unenforceable.

Earnings include base salary, commissions, and any guaranteed bonus, but not discretionary bonuses or equity. The statute looks at gross taxable income reported on the W-2, so practitioners check pay stubs and tax records to determine actual earnings.

For an employee earning under the threshold, the non-compete is void regardless of duration, geography, or any other scope question.

## Duration and scope limits

For employees above the threshold, the non-compete must still satisfy reasonableness review. The statute imposes a hard 18-month duration cap. Anything longer is presumptively unreasonable.

Geographic scope and activity scope are not statutorily capped but must be reasonable. Washington courts apply the standard reasonableness test: the restriction must be no broader than necessary to protect the employer's legitimate business interest. Continental geographic scope or industry-wide activity restrictions are routinely blue-penciled or voided.

## Notice requirements

The statute imposes procedural requirements that frequently determine enforceability:

- For non-competes signed at the start of employment, the employer must provide the agreement in writing before the employee accepts the offer
- For non-competes added after employment has started, the employer must provide independent consideration beyond continued employment

Continued employment alone is insufficient consideration in Washington. Common forms of acceptable additional consideration: a promotion, a meaningful pay increase, equity grant, or bonus tied specifically to signing the non-compete.

Many mid-employment non-competes in Washington fail on consideration grounds. If you signed one mid-employment without receiving anything new, the agreement is likely void.

## Garden leave for laid-off employees

Washington has one of the strongest protections for laid-off employees in the country. If an employer wants to enforce a non-compete against an employee who was laid off (terminated without cause), the employer must pay the employee's full base salary during the restriction period, minus any compensation the employee earns from new employment.

This effectively means employers rarely enforce non-competes against laid-off employees in Washington. The payment obligation typically exceeds the value of enforcement.

If you were laid off and you're under a Washington non-compete, the employer cannot pursue enforcement without paying you. Document the termination as without cause and preserve all separation records.

## Independent contractor threshold

The statute also applies to independent contractors but with a higher salary threshold. For 2024, the contractor threshold is $291,485.43. Independent contractors earning below this threshold cannot be bound by a non-compete.

The higher threshold reflects the lower bargaining power and looser ties that contractors typically have, requiring stronger justification for restricting their future work.

## What to do next

If you're a Washington employee under a non-compete, the four-step diagnostic is: (1) check your annualized earnings against the current threshold, (2) check whether the agreement was signed at hire or mid-employment with new consideration, (3) check the duration against the 18-month cap, (4) check whether you were laid off (garden leave applies).

If you want a delivered analysis of your specific non-compete against Washington law, with cited authority and a recommended response strategy, we deliver one in 24 hours for $199. See [Non-Compete Review](https://trycounteroffer.com/non-compete).

## Sources

- RCW 49.62 (Washington noncompete statute)
- 2024 salary thresholds published by Washington Department of Labor & Industries
- *Karpik v. Mostal*, Wash. Ct. App. (2022) (interpreting consideration requirement)

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## Related answers
- [Are non-competes enforceable?](https://trycounteroffer.com/answers/are-non-competes-enforceable)
- [California non-compete law 2026](https://trycounteroffer.com/answers/california-non-compete-law)
- [Massachusetts non-compete law](https://trycounteroffer.com/answers/massachusetts-non-compete-law)

## Get your contract reviewed
If you want a delivered review of your specific document with cited authority and counter language, see https://trycounteroffer.com/non-compete.

Last updated: Sun May 31 2026 00:00:00 GMT+0000 (Coordinated Universal Time)

_Counteroffer is a contract analysis service, not a law firm. This page is informational, not legal advice._
