Proposed bill in Olympia could end noncompete agreements for all employers

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OLYMPIA, Wash. – A new piece of legislation in Olympia is set to bar the use of noncompete agreements for all employers.

These contracts are typically used to prevent employees from joining a competitor or starting a related business within a certain distance or period of time.

Hardeep Rekhi, an employment attorney and president of the Washington State Association for Justice, emphasized the importance of employees having the freedom to market their skills to any employer they choose.

He believes noncompete agreements put workers in an unfair position.

“What it does, it usually suppresses their wages. It makes it so they have fewer opportunities in already a difficult job market. Sometimes it forces them to move out of the area, uproot kids, uproot family, because the employer just doesn’t want them working,” said Rekhi.

Advocates for noncompete agreements argue that they protect a company’s business interests, such as trade secrets and customer relationships.

The proposed bill aims to expand on a 2020 state law that limits the use of noncompete agreements to employees making above approximately $120,000 a year.

Sponsored by Representative Liz Berry of Seattle, the bill is scheduled for public hearings in January when the legislative session begins.


 

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