July 2019 Bar Bulletin
By Lawrence R. Cock, Jack M. Lovejoy and Benjamin Byers
Gov. Jay Inslee recently signed Engrossed Substitute House Bill 1450, which substantially reforms Washington’s common law of noncompetition covenants. As a result, employers who use noncompetition covenants with Washington-based employees will need to scrutinize their agreements and make changes before the January 1, 2020, effective date.
The bill was sponsored by Sen. Marko Liias (D-Lynnwood) and Rep. Derek Stanford (D-Bothell). The legislators were troubled by the ubiquity, expanding scope of prohibited activities, and lengthening duration of noncompetition covenants. The new law effectuates seven major reforms.
• Wage thresholds.If an employee earns less...