In Washington State, non-compete laws are governed by the Labor and Industries Code, specifically RCW 49.06.120. This law prohibits employers from entering into contracts that restrict an employee's right to work.
Washington State courts have interpreted this law to mean that non-compete agreements are unenforceable unless they meet specific requirements. These requirements include being reasonable in time and geographic scope, and not harming the public interest.
To be enforceable, non-compete agreements must be narrowly tailored to protect the employer's legitimate business interests. They cannot be overly broad or restrictive, and must be limited to a specific geographic area.
In the case of Labriola v. Pollard Group, Inc., the court ultimately determined that the non-compete agreement was unenforceable due to its overly broad scope.
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Labriola v. Pollard Group, Inc
In Labriola v. Pollard Group, Inc, the court considered the validity of a non-compete agreement.
The court found that the agreement was overly broad, restricting the employee's ability to work in the industry after leaving the company.
Pollard Group, Inc had argued that the agreement was necessary to protect its business interests, but the court disagreed.
The employee, Labriola, had been working as a sales representative for the company when he signed the agreement.
He was required to pay a $100,000 fee if he breached the agreement, which the court found to be an excessive penalty.
The court ultimately ruled in favor of Labriola, striking down the non-compete agreement as unreasonable and unenforceable.
This case highlights the importance of carefully reviewing and negotiating non-compete agreements.
The court's decision in Labriola v. Pollard Group, Inc has implications for businesses and employees alike, serving as a reminder of the need for clear and reasonable contract terms.
The non-compete agreement in question restricted Labriola from working for any competitor of Pollard Group, Inc for a period of two years.
Broaden your view: Non-compete Clause
Washington State Law
Washington-based employees are protected by a new law that took effect January 1, 2020. This law, RCW 49.62, imposes significant restrictions on non-compete agreements.
Choice of law and forum must be Washington for Washington-based employees. This means that if you're a Washington-based employee, you won't be forced to litigate a contract dispute in a foreign jurisdiction.
Employers are prohibited from using a choice of law clause that deprives Washington-based employees of the protections of the statute. This ensures that employees can consult a local attorney and avoid being subject to foreign law.
The law applies specifically to Washington-based employees, not those who work outside the state.
Non-Compete Agreements
A non-compete with a restrictive period longer than 18 months is now presumed unreasonable, unless the employer can prove otherwise by clear and convincing evidence. This is according to RCW 49.62.020(2).
In Washington state, a court found that a non-compete preventing workers from working with competitors for three years was not reasonable. The restrictive period was deemed overbroad and unenforceable.
A court or arbitrator must presume that any non-competition covenant with a duration exceeding 18 months is unreasonable and unenforceable.
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