The Washington Department of Labor and Industries (L&I) announced increases to the minimum salary thresholds for noncompete agreements, which will take effect on January 1, 2025. Washington law prohibits noncompete agreements with individuals who earn less than the applicable annual salary threshold. L&I publishes separate thresholds for employees and independent contractors which are both adjusted annually for inflation. The 2025 annual salary threshold is $123,394.17 for employees (up from $120,559.99 in 2024) and $308,485.43 for independent contractors (up from $301,399.98 in 2024). (Note: L&I’s webpage for noncompete agreements has not yet been updated with these 2025 thresholds.)
Tips: See our Legal Guide, Noncompetition Agreements, for guidance on additional requirements that must be met for these agreements to be valid in Washington. Contact your Vigilant Law Group employment attorney with any questions.
