By Tim O'Connell of Stoel Rives
During the last legislative session, Washington took significant steps to limit noncompetition agreements for employees in the state and prohibit employer policies that ban moonlighting, impacting not only an important part of many local companies' strategies to protect their market position, but also employee loyalty.
The new state statute regarding noncompetition agreements and moonlighting policies demands attention from Washington employers...
Starting Jan. 1, 2020, employers that utilize noncompetition agreements need to carefully evaluate whether those agreements will meet the new state standards. If not, employers should revoke or revise those agreements prior to the effective date...
Properly structured noncompetition agreements and properly based policies regarding moonlighting are valid. Employers must, however, address these new limitations, sooner rather than later.