{"id":62660,"date":"2026-03-28T03:00:41","date_gmt":"2026-03-28T02:00:41","guid":{"rendered":"https:\/\/housesmarketplace.com\/washington-just-banned-noncompete-agreements-will-other-states-follow-suit\/"},"modified":"2026-03-28T03:00:41","modified_gmt":"2026-03-28T02:00:41","slug":"washington-just-banned-noncompete-agreements-will-other-states-follow-suit","status":"publish","type":"post","link":"https:\/\/housesmarketplace.com\/ru\/washington-just-banned-noncompete-agreements-will-other-states-follow-suit\/","title":{"rendered":"Washington just banned noncompete agreements. Will other states follow suit?"},"content":{"rendered":"
\n

Washington Gov. Bob Ferguson signed a bill into effect earlier this week that bans noncompete agreements across the state. The move marks a significant shift in employment law that will take effect on June 30, 2027.<\/p>\n

The measure prohibits contracts that restrict workers from joining or starting competing businesses after leaving a job. Noncompete agreements are commonly used in industries such as technology, health care, finance and sales, but they also extend to the mortgage space<\/a>, where loan officers sometimes sign noncompetes with \u043a\u043e\u043c\u043f\u0435\u043d\u0441\u0430\u0446\u0438\u044f<\/a> tied to them.<\/p>\n

\u041f\u043e\u0434 the law<\/a>, noncompete agreements will be unenforceable for \u0412\u0430\u0448\u0438\u043d\u0433\u0442\u043e\u043d<\/a>-based workers and businesses starting on the effective date. Employers will be barred from entering into new agreements and must notify current and former workers in writing by Oct. 1, 2027, that existing noncompete clauses are void.<\/p>\n

The new state law also addresses nonsolicitation agreements. \u201cNonsolicitation agreements, which prohibit an employee from actively soliciting current customers or employees away from the employer, are not prohibited; however, the definition of nonsolicitation agreement must be narrowly construed,\u201d the legislation states.<\/p>\n

Meredith Miller, professor of law at Albany Law School, said that the new law is \u201csweeping\u201d and could drive up wages for employees.<\/p>\n

\u201cThis could, in turn, increase the cost of borrowing<\/a> \u2014 that is, if higher employment costs are passed on to borrowers in the form of fees. But it also means that employees in the industry may find the best-fit jobs for them and the employer, because the employees can move around. This might introduce efficiencies and even \u0438\u043d\u043d\u043e\u0432\u0430\u0446\u0438\u0438<\/a> into the mortgage market,\u201d Miller told \u0416\u0438\u043b\u044c\u0435\u041f\u0440\u043e\u0432\u043e\u043b\u043e\u043a\u0430<\/strong>.<\/p>\n

\u0412 \u0441\u043e\u043e\u0442\u0432\u0435\u0442\u0441\u0442\u0432\u0438\u0438 \u0441 \u0441\u043e\u0441\u0442\u0430\u0432\u043b\u0435\u043d\u0438\u0435 \u043e\u0442\u0447\u0435\u0442\u043e\u0432<\/a> from The Seattle Times and information from the Economic Innovation Group<\/strong>, Washington joins a small group of states that have enacted full bans on noncompete agreements, including California, North Dakota, Minnesota and Oklahoma.<\/p>\n

Miller said due to the \u201crapidly shifting landscape,\u201d it\u2019s hard to tell when and if other states will follow suit. \u201cOne such bill is pending in [New York]. There are only a handful\u2026that have outright bans. But then there is Florida, which recently passed legislation to make non-competes easier for employers to enforce.\u201d<\/p>\n

Washington\u2019s move follows broader national efforts to curb noncompete agreements. During the Biden administration in 2024, the \u0424\u0435\u0434\u0435\u0440\u0430\u043b\u044c\u043d\u0430\u044f \u0442\u043e\u0440\u0433\u043e\u0432\u0430\u044f \u043a\u043e\u043c\u0438\u0441\u0441\u0438\u044f <\/strong>(FTC) approved a nationwide ban<\/a>, but the rule was later rolled back after legal challenges from employers and trade groups.<\/p>\n

The FTC, effective Feb. 12, 2026, published a final action in the \u0424\u0435\u0434\u0435\u0440\u0430\u043b\u044c\u043d\u044b\u0439 \u0440\u0435\u0435\u0441\u0442\u0440<\/a> that officially removed the Non-Compete Clause Rule (16 CFR Part 910) from the Code of Federal Regulations. Now, noncompete enforceability remains governed by state law, which builds upon the \u0430\u0434\u043c\u0438\u043d\u0438\u0441\u0442\u0440\u0430\u0446\u0438\u044f \u0422\u0440\u0430\u043c\u043f\u0430<\/a>\u2018s decision to have the FTC take a case-by-case approach when evaluating noncompete clauses.<\/p>\n

The agency previously issued a public \u0437\u0430\u043f\u0440\u043e\u0441 \u0438\u043d\u0444\u043e\u0440\u043c\u0430\u0446\u0438\u0438<\/a> on noncompete agreements in September 2025.<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

Washington Gov. Bob Ferguson signed a bill into effect earlier this week that bans noncompete agreements across the state. The move marks a significant shift in employment law that will take effect on June 30, 2027. The measure prohibits contracts that restrict workers from joining or starting competing businesses after leaving a job. Noncompete agreements […]<\/p>","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-62660","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"yoast_head":"\nWashington just banned noncompete agreements. 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