Noncompetes Are Going Away in Washington. So Now What?
Washington is about to eliminate noncompete agreements.
Not limit them — eliminate them.
Starting in 2027, noncompetes will be void and unenforceable, regardless of income level. That includes agreements already in place today.
If you’ve relied on noncompetes to protect your business, this is a meaningful shift. But it’s also an opportunity to rethink how you actually protect value.
What Changed (Quickly)
Washington has been tightening restrictions on noncompetes for several years. This new law goes further.
The headline is simple: employers can no longer restrict workers from competing after they leave.
The more important point is what comes next.
The Misconception About Noncompetes
Most businesses assume noncompetes are their primary protection against competition.
In practice, they rarely are.
Noncompetes are often difficult to enforce, expensive to litigate, and, more importantly, don’t actually prevent the loss of the things that matter most: relationships, information, and execution. What they provide is a false sense of comfort.
With that gone, the focus shifts to protections that actually work.
What Replaces the Noncompete
The businesses that navigate this well will not be the ones trying to recreate noncompetes under a different name. They will be the ones that tighten the fundamentals.
That starts with confidentiality that is actually enforceable.
Generic NDAs are not enough. Agreements need to clearly define what is protected and how it is used, and they need to align with how your business actually operates.
Trade secret discipline matters as much as the paperwork. If everything is “confidential,” nothing is. Courts look at whether you treat information like a trade secret, and that requires process, not just paper.
Targeted non-solicitation provisions remain viable, provided they are drafted carefully. Narrow restrictions tied to real customer relationships and internal teams can still hold up under the new law.
Finally, clear ownership of IP and work product is often the most overlooked piece. If ownership is ambiguous, you are not just dealing with competition, you are dealing with the loss of core assets.
Where Companies Will Get It Wrong
There are a few predictable mistakes.
Some businesses will try to recreate noncompetes through financial penalties or forfeiture provisions. The new law was written specifically to prevent that.
For example, a provision that causes an employee to forfeit equity if they join a competitor may look different from a noncompete, but under the new law it raises the same issue, and is likely to be treated the same way.
Others will use overly broad restrictions that will not survive scrutiny.
Or assume existing agreements will continue to provide meaningful protection after the effective date.
The most common mistake will simply be waiting until a key employee leaves to address the issue.
This is not a drafting exercise. It is a structural one.
What To Do Now
You do not need to overhaul everything overnight. But you should identify where your business currently relies on noncompetes, review your confidentiality, IP, and nonsolicitation provisions for real enforceability, and align your agreements with how your team actually operates.
The law is currently scheduled to take effect on June 30, 2027, and employers will be required to notify workers in writing that existing noncompetes are void and unenforceable once it does.
Waiting until 2027 is too late. By then, the leverage is gone.
Final Thought
Noncompetes were never the strongest way to protect a business. They were just the most visible, and the most misunderstood.
The companies that adapt will not be less protected, they will be better positioned, because their protections will be tied to how value is actually created and maintained.
If you are relying on noncompetes today, it’s worth taking a closer look at what is actually protecting your business, and identifying where gaps exist.
Troy Nehring is the founder of Cruxterra Law Group, a transactional boutique based in Bellevue, Washington. This post is for informational purposes only and does not constitute legal advice or create an attorney-client relationship.
