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A non-compete agreement in the State of Washington is a legal document relying upon the use of restrictive covenants that allows companies to limit an employee's post-employment actions to protect their trade secrets and business practices. Employers often implement non-competition agreements when prospective employees or independent contractors enter key positions and may work with sensitive information to protect customer information, contacts, and other confidential information. Although Washington state will enforce the terms of the non-competition agreement, the state also recognizes a former employee's need to earn a living, so it imposes restrictions on non-compete agreements to protect a person’s right to work.
A non-compete agreement may stand as its own contract. When it does, it is often used along with nonsolicitation agreements and confidentiality agreements (also known as nondisclosure agreements) to better protect their business interests. A non-competition covenant may also be found in an employment contract or even within a contract between a franchisor and a franchisee.
Before using a non-competition agreement, a Washington business should seek legal advice from a law firm that practices employment law. A recent law impacts how courts view these agreements and how they may be used. Better guidance and understanding to navigate the state law instead of relying on Google may improve enforceability under Washington law. Unlike other states in the United States, there are multiple factors and restrictions that could impact a former employer's cause of action. A lawyer should interpret the new non-compete law for any employer who wishes to use this type of agreement to protect their business interests.
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