Washington SB5437 voids noncompetition agreements and clarifies permissible nonsolicitation agreements.

Washington SB5437 makes noncompetition agreements void and unenforceable, except under specific conditions. These agreements, which restrict employees from engaging in similar work, are deemed unreasonable and harmful to workforce mobility. The bill defines "noncompetition covenant" broadly but excludes nonsolicitation agreements, confidentiality agreements, and those involving trade secrets. Employers must disclose the terms of such agreements at the time of employment acceptance. Violators face penalties including damages and attorney fees.

Washington SB5437 voids noncompetition agreements and clarifies permissible nonsolicitation agreements.

Washington SB5437 makes noncompetition agreements void and unenforceable, except under specific conditions. These agreements, which restrict employees from engaging in similar work, are deemed unreasonable and harmful to workforce mobility. The bill defines "noncompetition covenant" broadly but excludes nonsolicitation agreements, confidentiality agreements, and those involving trade secrets. Employers must disclose the terms of such agreements at the time of employment acceptance. Violators face penalties including damages and attorney fees.