Could WA State Get a No-Compete Clause Ban Next Year?

A no-compete clause is often required for some workers when they are hired. But a proposed law that will be looked at in January could ban the practice in WA. They are sometimes referred to a non-compete clauses.

   Legislature to hold hearings on proposed ban

No-competes are simply binding agreements that a worker at a company cannot immediately 'jump ship' to another competing firm or business within the same industry without 'sitting out' for a while.

It mostly applies to high-demand or competitive industries. For example, for years in many radio markets across the US (medium and larger) morning show hosts would be required to sign one, to ensure the crosstown competition would not try to poach them away.

One of the most-used tactics in radio wars was to hire away a very popular morning or other daypart team or person from the competition to boost your station's ratings, and potential ad revenue.  However, that practice has faded considerably, due to consolidation and a shinking workforce. A lot of radio no-competes were for six months, and it had to apply to moving to another station in the same market.

But it's still prevalent in many industries. Now, the legislature is looking at WA joining four other states, CA, Oklahoma, North Dakota and Minnesota, that have complete bans. Other states have partial bans.

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In 2024 an effort by the Federal Trade Commission to pass a nationwide no-compete ban was overturned by Federal judgs, and the FTC chose not to pursue the matter anymore.

Supporters of the clauses say it protects the health and financial stability of a business, opponents say it hurts workers, preventing them from taking a more lucrative job.

Supporters also say it prevents job-hopping, which they say hurts businesses. The WA Proposal is put forth by Democrat House Rep Liz Berry of Seattle.