Non-competes valid only above $126,858.83 in 2026.
Washington's non-compete law (RCW 49.62, enacted 2020) is one of the most worker-protective in the country. Non-competes are unenforceable against workers earning below specific thresholds, indexed annually. 2026 thresholds: $126,858.83 for employees, $317,147.09 for independent contractors. Workers earning at least $34.26/hr cannot be restricted from holding a second job. The law also requires advance disclosure (before acceptance), payment during enforcement of the non-compete (50% of base wage), and limited duration (typically 18 months). Non-conforming agreements are void by statute.
Non-Compete Threshold Configuration
Validates non-compete agreements against current WA thresholds. Tracks annual CPI updates. Surfaces worker compensation in relation to threshold for enforceability analysis.
What those rules do as employment agreements go through.
The hero card configuration: Block on under-threshold, Flag on annual updates.
When an employment agreement includes non-compete language but the worker's annualized compensation falls below the WA threshold, Teambridge flags the agreement as unenforceable. The agreement can save (advisory enforcement is permitted) but the unenforceability is documented.
L&I publishes new thresholds annually. Teambridge tracks the update and re-evaluates active non-compete agreements against the new threshold. Workers who were below threshold and now above (or vice versa) surface for review.
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Three thresholds, all CPI-indexed annually.
Washington's non-compete framework is unusually strict among states: not just enforceability limits but also disclosure requirements, payment during enforcement, and specific damages for void agreements.
Three thresholds for 2026
RCW 49.62 establishes three distinct compensation thresholds, all CPI-indexed: (1) Employee threshold $126,858.83/year — annualized total compensation below this voids the non-compete. (2) Independent contractor threshold $317,147.09/year — same principle for non-employee workers. (3) Moonlighting threshold $34.26/hr — workers below this rate cannot be restricted from holding a second job. The thresholds update annually based on CPI; L&I publishes the new figures each year.
Substantive requirements beyond thresholds
Even for workers above threshold, the non-compete must be: (1) disclosed to the worker in writing no later than the time of accepting employment (or with independent consideration if added later), (2) limited in duration — 18 months is the rebuttable presumption, with longer durations requiring justification, (3) supported by garden leave (50% of base salary during enforcement) for layoffs. Non-conforming agreements are void.
Teambridge tracks compensation against thresholds.
Non-compete enforceability is a moving target — annual CPI updates mean a worker who was above threshold can drop below, or vice versa. Continuous tracking is the only way to know.
Annual CPI updates ingested.
L&I publishes new thresholds each year. Teambridge ingests the update and re-runs enforceability analysis against all active non-compete agreements.
Annualized total comp.
For each worker with a non-compete, total compensation (base + commissions + bonuses + equity grants vesting in the year) annualizes for comparison to the threshold. Multiple comp components aggregate correctly.
Crossings flag for review.
When a worker's annualized comp crosses the threshold (either direction), the system surfaces the change. Drops below threshold mean the non-compete is now unenforceable; rises above mean it may now be enforceable (subject to other requirements).
Decision support.
Every non-compete decision logs with: applicable threshold, worker comp at time of decision, supporting documentation. Defensible if challenged.
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