SSB 5935 — Concerning noncompetition covenants.

What this bill does

Amends the definition of "noncompetition covenant" to: (1) include agreements that directly or indirectly prohibit the acceptance or transaction of business with a customer; and (2) exclude covenants where the person signing the covenant purchases, sells, acquires, or disposes of an interest representing one percent or more of the business. Makes changes related to: (1) circumstances under which noncompetition covenants are void and unenforceable; (2) causes of action by aggrieved persons; (3) displacement of other laws; and (4) statutory construction.

From the Washington State Legislature's nonpartisan staff bill analysis. Read the full analysis ↗

Floor votes

• House — 3rd Reading & Final Passage · February 22, 2024
  55 yea · 38 nay · 5 not voting
• Senate — 3rd Reading & Final Passage · February 6, 2024
  29 yea · 20 nay

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