The GigReporter

SCI has reported before on changes in state law across the country about non-compete agreements, most of them placing additional restrictions on their enforcement. Now, the state of Washington has gone even further, with a new law that will bar non-competes completely beginning in 2027.

Non-compete agreements have long been generally disfavored under traditional contract law principles, but their increasing prevalence over the past decade has motivated many states to institute further statutory restrictions. Washington had previously restricted the use of non-competes for individuals below a certain income threshold, but has now gone even further.

House Bill 1155[1] was signed into law on March 23, and will make almost all non-competes void and unenforceable when it goes into effect on June 30, 2027. There are exceptions for agreements related to the sale of a business or franchise, and the statute also separates non-solicitation and confidentiality agreements. However, the statute will also impose new limitations on non-solicitation clauses as well, most notably a maximum effective length of eighteen months after the end of the relationship. Finally, any business that has existing non-competition agreements with any former employees or independent contractors must try to provide written notice to those workers that the non-compete is now void and unenforceable before October 1, 2027.

SCI has said before that a combination of narrowly tailored non-solicitation and confidentiality agreements can often protect your business to the same degree as a non-compete while drawing less scrutiny, and soon logistics brokers in Washington will have no choice but to take that option. Over the next year you should consult with your own legal counsel about removing or replacing any existing non-compete covenants in your contracts, ensuring any non-solicitation clauses comply with the new rules, and gathering a list of owner/operators purportedly subject to non-competes with your business so you can send letters to their last known address between June and October 2027.

[1] https://app.leg.wa.gov/BillSummary/?BillNumber=1155&Year=2025&Initiative=false