Washington’s 2026 ban on noncompetes did not come out of nowhere. Even before it passed, Washington courts and the 2019 noncompete statute were steadily narrowing what employers could enforce. The Washington Supreme Court’s 2025 decision in David v. Freedom Vans, 4 Wash.3d 242 (2025) (En Banc) is a useful marker of that trend—and a preview of the drafting problems the ban now resolves.
The backdrop: RCW 49.62
Since 2020, chapter 49.62 RCW has limited noncompetition covenants—barring them for lower-wage workers and imposing thresholds and disclosure rules on the rest. It also left room for certain restrictions tied to an employee’s common-law duty of loyalty while employed. The dividing line between an unenforceable noncompete and a permissible loyalty-based restriction is exactly where litigation clustered.
What the Case illustrates
David addressed an “anti-moonlighting” restriction applied to a lower-wage worker and the argument that the duty-of-loyalty concept saved it from the statute. The Washington Supreme Court declined to treat that exception as an automatic escape hatch, underscoring that these restrictions are judged carefully and narrowly rather than rubber-stamped.
Why it still matters after the ban
Two reasons. First, until June 30, 2027, the existing statute and cases like David still govern—so a covenant you are relying on today is being judged under that stricter-but-not-yet-total framework. Second, David shows why the categories that survive the ban (confidentiality, trade secrets, narrow nonsolicitation) have to be drafted precisely: courts were already refusing to bless loosely worded restrictions, and the new ESHB 1155 makes precision even more essential.
What to do
- Do not assume a “moonlighting” or “loyalty” label rescues a restriction that functions like a noncompete—courts look at substance.
- Treat the period before June 30, 2027 as governed by the current statute; do not over-rely on covenants that were already vulnerable.
- Move your protection now toward confidentiality and trade-secret tools that will still be enforceable after the ban.
Read together, David and the 2026 ban tell a single story: Washington has been moving away from enforceable noncompetes for years, and it has now arrived at the destination.
If you have questions about restrictive covenants and the duty of loyalty, or any other services, you can reach us at martinkreshon.com or call (206) 929-0609. You can also find reviews for Martin on Google and Avvo.
This post is for general informational purposes only and is not legal advice.