BillTracker

Limiting noncompetition agreements (Liias, Fain)

Addresses the protection of workers from work restrictions. Prohibits an employer from restricting, restraining, or prohibiting an employee, who works fewer than forty hours per week or earns less that two hundred percent of the applicable state or local minimum wage, from: (1) Having an additional job; (2) Supplementing their income by working for another employer; (3) Working as an independent contractor; or (4) Being self-employed.

EFFECT OF CHANGES MADE BY 1ST SUBSTITUTE:
The income threshold for a noncompetition agreement to be unenforceable is changed to less than three times the average weekly wage. A provision that makes a noncompetition unenforceable if the employee was terminated during a probationary period is removed. A provision requiring noncompetition agreements to contain garden leave clauses is removed. A provision providing that a noncompetition agreement is unenforceable if an employee is terminated due to a reduction in force, unless the employer pays the employee their salary while the agreement is enforced. A provision that makes an agreement unenforceable if it forces the employee to adjudicate the agreement outside of Washington is removed. A duplicate Consumer Protection Act provision is removed.

Hearing Date: Thursday, January 25, 2018 -- 1:30 pm

WA State Legislature Link:
http://app.leg.wa.gov/billsummary?BillNumber=6522&Year=2017    (opens a new browser tab)