WA SB5437

All noncompetition covenants become void and unenforceable beginning on the effective date, regardless of when they were signed, eliminating previous exceptions based on employee earnings thresholds or employer disclosure requirements

Employers must provide written notice by October 1, 2025 to current employees, former employees, and independent contractors that any existing noncompetition covenants are void and unenforceable

The definition of noncompetition covenant expands to include agreements between performers and performance spaces, agreements prohibiting business with customers, and provisions requiring forfeiture of compensation for engaging in lawful work

Nonsolicitation agreements remain permitted but are narrowly defined to only prohibit actively soliciting current employees to leave or current customers to reduce business with the employer

Violations carry penalties of actual damages or $5,000 statutory penalty plus attorneys' fees, with enforcement authority granted to both the Attorney General and aggrieved individuals