Non-competition bans are controversial in some quarters. Supporters believe they protect trade secrets, while many critics say they stifle innovation and job opportunities. Workers earning less than twice the state minimum wage should not be prevented from holding additional employment (i.e. for a competitor) until the additional position raises safety issues or affects the employer`s normal planning expectations. The law finds that the ability to hold additional employment “does not change the worker`s obligations to the employer,” “including the obligation of the general age of loyalty and laws to avoid conflicts of interest and the corresponding policy that deals with those obligations.” It remains to be seen how the courts will use this suspension and restrictive restrictions and whether, for example, a worker will be able to work at the same time for competitors as long as he claims to maintain his “loyalty” to both employers. Workers who earn less than the minimum wage for non-compete agreements may continue to sign non-appeal agreements. While non-injunction agreements are not as restrictive as non-competition agreements, they may allay some of the concerns of employers. In particular, the new legislation does not address the use of inactivity agreements for employees or customers or related restrictive agreements. The purpose of this newsletter is to provide an overview of recent changes to Washington legislation that restrict employers` use of non-compete agreements. RcW 49.62 came into force on January 1, 2020 and has an impact on new and existing agreements with self-employed workers and contractors. On January 1, 2020, new laws restrict the application of competition rules by an employer in Washington State.
Under the new law, non-competition bans apply only if: regardless of your personal beliefs about competition bans, you need to know what the impact of recent changes made by the Washington State Law to your business will be. A new non-competition law in Washington, which covers both existing and new agreements, came into force on January 1, 2020. Note: While the new Non-Competitive Conditions Act excludes non-competition agreements, some elements are often included in non-invitation agreements, which should probably be eliminated to avoid being considered non-competitive provisions. These include provisions preventing outgoing employees from requesting activities from potential customers or from accepting unsolicited transactions from customers. NEW LAW, NEW TERMS Under Washington`s new non-competition law, which will come into force on January 1, 2020, non-competition bans will only apply if: in recent years, The Legislature in Washington has shown increasing interest in ousting the common law on non-counting agreements. Previous proposals would have limited the use of non-competition agreements with workers in certain sectors and occupations (e.g. B doctors) as well as part-time or part-time workers. Previous proposals would also have made longer non-competition durations for agreements elusive. Non-competition obligations apply only if: Moonlighting: When a worker earns less than double the state minimum wage, an employer cannot restrict, restrict or prohibit the worker from having additional employment by supplementing the worker`s income through the work of another employer, as an independent contractor or as an independent. However, this does not apply when services pose safety concerns or affect the employer`s reasonable and normal planning expectations. The worker`s obligations to the employer under current legislation (e.g.B. The common right to loyalty and conflict of interest prevention laws) remain unchanged.
Any provision of a non-competition agreement that requires an out-of-court decision by an