The Washington Department of Labor and Industries (L&I) announced the final increase to the minimum salary thresholds for noncompete agreements, effective January 1, 2027, prior to the new ban on noncompete agreements taking effect on June 30, 2027. Until the ban takes effect, Washington law only allows noncompete agreements with individuals who earn at least the applicable annual salary threshold, as adjusted one last time for inflation. The 2027 annual salary threshold is $131,326.59 for employees (up from $126,858.83 in 2026) and $328,316.49 for independent contractors (up from $317,147.09 in 2026). When the new Washington noncompete ban takes effect on June 30, 2027, these salary thresholds will disappear (or “sunset”) and all noncompete agreements with employees and independent contractors will be prohibited. We expect L&I’s webpage for noncompete agreements to be updated soon with the new 2027 thresholds.
Tips: See our previous article and our Legal Guide, Noncompetition Agreements, for details and guidance on the new law banning noncompete and related agreements, and the relevant requirements. Vigilant members: Contact your Vigilant Law Group employment attorney with any questions.
