Washington State Just Banned Noncompetes — Here's Why Florida Employers Should Pay Attention

On March 23, 2026, Washington became the latest state to impose a near-total ban on noncompete agreements — a trend that continues to gain momentum across the country, even as Florida moves in the opposite direction.

Washington Governor Bob Ferguson signed ESHB 1155 into law, which will prohibit employers from enforcing noncompetition covenants against virtually all Washington-based workers beginning June 30, 2027. The law goes further than most state bans: it bars employers from even threatening to enforce a noncompete or representing that a worker is bound by one. Employers will also be required to notify affected current and former workers in writing by October 1, 2027 that their existing noncompete agreements are void.

The new law defines noncompetition covenants broadly. In addition to traditional agreements restricting an employee from working for a competitor, the ban covers customer non-solicitation provisions that prohibit accepting or transacting business with a customer, as well as forfeiture-for-competition clauses that require an employee to repay compensation or benefits if they go work elsewhere.

What's Still Allowed in Washington?

Not everything is off the table. Confidentiality agreements, trade secret protections, certain business sale covenants, franchise agreements, and narrow non-solicitation agreements that only prohibit an employee from actively soliciting current customers or employees remain enforceable. However, those non-solicitation agreements must expire within 18 months and cannot restrict a worker from simply accepting business from a former customer who reaches out on their own.

Employers who violate the law face actual damages or a $5,000 penalty — whichever is greater — plus attorneys' fees.

Why Should Florida Employers Care?

Florida has taken the opposite approach. With the CHOICE Act taking effect on July 1, 2025, Florida made it easier to enforce noncompetes for certain high-earning employees, allowing restrictions of up to four years and creating a presumption of enforceability with mandatory preliminary injunctions.

But here's the thing — if you have employees, contractors, or business operations in multiple states, you need to be aware of what's happening beyond Florida's borders. Washington is now one of a growing number of states (joining California, Minnesota, North Dakota, Oklahoma, and others) that have significantly restricted or outright banned noncompetes. If you have workers based in those states, your Florida-drafted noncompete may not be worth the paper it's printed on.

Next Steps for Multi-State Employers

We would suggest taking a fresh look at your noncompete agreements if you employ workers in more than one state. Specifically, consider whether your agreements account for the laws of the states where your employees actually work, whether any of your current noncompetes cover workers in states that have enacted bans, and whether you are relying on choice-of-law provisions that may not hold up in a jurisdiction that has a strong public policy against enforcement.

If your workforce is entirely in Florida, you are still in one of the most employer-friendly states in the country when it comes to noncompetes. But the national landscape is shifting, and it pays to stay ahead of it.