Washington just banned noncompetes. Will other states follow suit?

"Under the law, noncompete agreements will be unenforceable for Washington-based workers and businesses starting on the effective date. Employers will be barred from entering into new agreements and must notify current and former workers in writing by Oct. 1, 2027, that existing noncompete clauses are void."

"The new state law also addresses nonsolicitation agreements. Nonsolicitation agreements, which prohibit an employee from actively soliciting current customers or employees away from the employer, are not prohibited; however, the definition of nonsolicitation agreement must be narrowly construed."

"Washington joins a small group of states that have enacted full bans on noncompete agreements, including California, North Dakota, Minnesota and Oklahoma. Washington's move follows broader national efforts to curb noncompete agreements."

"The FTC, effective Feb. 12, 2026, published a final action in the Federal Register that officially removed the Non-Compete Clause Rule (16 CFR Part 910) from the Code of Federal Regulations."

Washington state will enforce a ban on noncompete agreements for workers and businesses, effective immediately. Employers cannot enter new agreements and must inform current and former employees by October 1, 2027, that existing clauses are void. Nonsolicitation agreements remain permissible but must be narrowly defined. Washington joins states like California and Minnesota in banning noncompete agreements, reflecting a national trend. The Federal Trade Commission's nationwide ban was rolled back after legal challenges, leaving noncompete enforceability to state law, following a case-by-case evaluation approach from the previous administration.

Read at www.housingwire.com