Noncompete agreements by state in 2026: federal rule removed, Washington near-total ban from June 30, 2027
Key points
- The FTC noncompete rule was removed on February 12, 2026 (91 FR 6507); there is no federal noncompete ban
- Washington's ESHB 1155 takes effect June 30, 2027, voids existing agreements, and treats forfeiture and no-business clauses as noncompetes
- Washington employers must give written notice by October 1, 2027 to current and former employees and contractors with unexpired noncompetes
After the FTC's 2024 noncompete rule was set aside by a court, it was removed from the Code of Federal Regulations on February 12, 2026. California, Minnesota and North Dakota void most noncompetes; Oklahoma still allows agreements not to directly solicit the former employer's established customers; Wyoming covers only contracts entered into on or after July 1, 2025 and expressly exempts executive and management personnel. Washington's ESHB 1155, signed March 23, 2026, takes effect June 30, 2027: existing noncompetes are also void, clauses forfeiting pay for competing count as noncompetes, and by October 1, 2027 employers must notify in writing current and former employees whose noncompetes have not expired. For reference only; this is not legal advice.
What employers should do
- Review noncompete, forfeiture and no-business clauses for Washington employees and contractors before June 30, 2027
- By October 1, 2027, make reasonable efforts to notify in writing current and former employees and contractors with unexpired noncompetes
- Check other states' pay thresholds and conditions, e.g. Wyoming covers only contracts from July 1, 2025
Policy details
- Jurisdiction
- Washington State
- Status
- Signed, not yet effective
- Effective date
- 2027-06-30
- Employers covered
- Washington: noncompetes void regardless of when signed; covers employees and independent contractors
- Official source
- View official source ↗