A non-compete agreement is a contract between an employer and an employee that restricts the employee from working for a competitor or starting a competing business for a certain period of time after leaving the employer. These agreements are commonly used in various industries to protect trade secrets and other valuable business information.
In Washington State, non-compete agreements are generally enforceable, but there are certain limitations. The state has enacted a law that restricts the use of non-compete agreements in certain situations.
Under Washington State law, non-compete agreements are unenforceable against employees earning less than $100,000 per year. This means that if an employee’s annual salary is less than $100,000, the non-compete agreement is not legally binding.
In addition, non-compete agreements must meet certain criteria to be enforceable in Washington State. The agreement must be limited in geographic scope, meaning that it cannot restrict the employee from working in a large geographical area. The agreement should also be limited in time, meaning that it cannot restrict the employee from working for a competitor for an extended period of time.
Furthermore, non-compete agreements in Washington State must be supported by valuable consideration. This means that the employee must receive some form of benefit in exchange for signing the agreement. For example, the employer may provide additional training or a signing bonus to the employee.
If an employer violates any of these limitations, the non-compete agreement may be unenforceable in court. However, it is important to note that the burden of proving the agreement is unenforceable falls on the employee.
In conclusion, non-compete agreements are legal in Washington State but are subject to certain limitations. Employers should carefully craft these agreements to ensure they are enforceable and do not violate state law. Employees should also understand their rights under the law and seek legal counsel if they believe their non-compete agreement is overly restrictive or unenforceable.