OLYMPIA – On Monday, March 23, Governor Bob Ferguson signed into law legislation from Rep. Liz Berry (D-Seattle) that bans noncompete agreements in Washington state. HB 1155, a top priority for Berry, aligns state law with a Biden-era Federal Trade Commission rule that banned noncompete agreements in the workplace. The Washington State House of Representatives passed the bill on February 10, and the Senate passed an amended version on March 5. After the House agreed with the changes, the bill went to Ferguson for approval.
“Washington state is standing up for workers. By banning noncompete agreements, we’re putting power back into the hands of the employee when it comes to choosing your destiny. If you want to take a new job with better pay or leave to start your own company, your old job shouldn’t be able to block you from pursuing your dream. This is great for workers, strengthens entrepreneurship, and grows our economy,” said Berry.
Ferguson also signed HB 2264, a new law requiring that when a company is issuing layoffs or engaging in workforce reductions and workers voluntarily participate in the layoff, those workers can still access unemployment insurance benefits. The law clarifies what some courts have seen as ambiguous and has led to some workers being disqualified from accessing benefits.
HB 1155 is effective on June 30, 2027, and HB 2264 goes into effect on June 11, 2026.
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