SB 5437 Washington Senate · 2025-2026 Regular Session

Prohibiting noncompetition agreements and clarifying nonsolicitation agreements.

Washington State's SB 5437 prohibits all noncompetition agreements (like clauses restricting employees from working in their field after leaving a job) for most workers, making them void and unenforceable. It directly affects employees and independent contractors by removing these restrictions, while allowing narrowly defined nonsolicitation agreements (which prevent poaching customers or coworkers) but not broadly restricting work. Employers must notify current and former workers about the void status of noncompete clauses by October 1, 2025. The law also prohibits employers from enforcing, threatening to enforce, or entering into prohibited agreements, with penalties for violations.

Issues: ✓ Labor & Employment

Bill status in committee 1 of 4 stages cleared

Introduction

Jan 2026

Committee Review

Floor Vote

Governor

Introduced Jan 12, 2026 Last action Feb 26, 2026

Maddy AI version diff · 1 comparison

What changed between versions

Bill → Substitute Bill · 4 edits

MODERATE

The bill was updated from the 2025 Regular Session to the 2026 Regular Session, reflecting a one-year delay in the legislative timeline. The core policy content regarding the ban on noncompetition agreements remains substantively identical, but the text was expanded to include a new introductory section explaining the rationale behind the ban and clarifying that the law does not interfere with tribal sovereignty.

Scope change

The bill's scope remains the same, but the text now explicitly excludes tribal nations and their jurisdiction over employment standards within Indian country.

TIMELINE

The legislative session changed from the 2025 Regular Session to the 2026 Regular Session, pushing the effective dates and deadlines forward by one year.

SCOPE

A new section was added to explicitly state that the ban on noncompetition agreements does not modify or interfere with the sovereignty of tribal nations or their exclusive jurisdiction over employment standards for employees working in Indian country.

REQUIREMENT

A new introductory section was added to the bill text to provide a detailed rationale for the ban, citing economic harm, wage suppression, and the need to align with federal trade commission rules.

TECHNICAL

The bill's title was updated to include 'creating a new section' and 'providing an effective date' to reflect the new introductory text and session year.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Jan 30, 2026

Upper · Passed

Minority; do not pass.

upper

Jan 30, 2026

Upper · Passed

Executive action taken in the Senate Committee on Labor & Commerce at 8:00 AM.

upper

Jan 19, 2026

Upper · Passed

Public hearing in the Senate Committee on Labor & Commerce at 10:30 AM.

upper

Jan 12, 2026

Introduced

By resolution, reintroduced and retained in present status.

upper

Feb 18, 2025

Upper · Passed

Public hearing in the Senate Committee on Labor & Commerce at 10:30 AM.

upper

1 primary · 10 co-sponsors