WA People
BILL · 2019–20 SESSION · LATEST VERSION ESHB 1450

HB 1450: Noncompetition covenants

Concerning restraints on persons engaging in lawful professions, trades, or businesses.

Summary

  • Voids noncompetition covenants against employees and independent contractors unless certain provisions are met.
  • Presumes covenants exceeding 18 months are unreasonable and unenforceable.
  • Prevents franchisors from restricting franchisees from hiring other franchisees' employees or the franchisor's employees.
  • Prohibits employers from restricting certain employees from having other jobs or work, with limited exceptions.
  • Allows a court to order a violator to pay the greater of actual damages or $5,000, attorney's fees, and costs.

From the Engrossed Substitute Senate Bill Report (ESHB 1450), written by the Legislature's nonpartisan staff. Read the full report ↗

Enacted Enacted · Chapter 299, Laws of 2019
  1. IntroducedJan 22, 2019
  2. Out of committeeFeb 22, 2019
  3. Passed HouseMar 12, 2019
  4. Passed SenateApr 17, 2019
  5. GovernorMay 8, 2019
  6. LawMay 8, 2019
Prime sponsor
Derek Stanford (D-1)
Introduced
January 22, 2019 in the House
Last action
May 8, 2019
Session law
Chapter 299, Laws of 2019
Companion bill
SB 5478
Budget
Has a fiscal note
Versions
HB 1450, ESHB 1450

AN ACT Relating to restraints, including noncompetition covenants, on persons engaging in lawful professions, trades, or businesses;

Sponsors

Prime sponsor: Derek Stanford (D-1)

6 co-sponsors (6 Democrats, 0 Republicans)

Shelley Kloba D-1Steve Bergquist D-11Joe Fitzgibbon D-34Mike Sells D-38Bill Ramos D-5Timm Ormsby D-3

Votes

House · Final Passage

Passed March 12, 2019
Version voted on: ESHB 1450
55 Yea 41 Nay 0 Absent 2 Excused
PartyYeaNayAbsentExcused
Democrat54201
Republican13901
How each member voted

Yea (55)

Excused (2)

Permalink to this vote

Senate · 3rd Reading & Final Passage

Passed April 17, 2019
Version voted on: ESHB 1450
29 Yea 19 Nay 0 Absent 1 Excused
PartyYeaNayAbsentExcused
Democrat27101
Republican21800
How each member voted

Excused (1)

Permalink to this vote

History

  1. Effective date 1/1/2020. (ESHB 1450)
  2. Chapter 299, 2019 Laws. (ESHB 1450)
  3. Governor signed. (ESHB 1450)
  4. Delivered to Governor. (ESHB 1450)
  5. President signed. (ESHB 1450)
  6. Speaker signed. (ESHB 1450)
  7. Placed on second reading by Rules Committee. (ESHB 1450)
  8. Third reading, passed; yeas, 29; nays, 19; absent, 0; excused, 1. (ESHB 1450)
  9. Rules suspended. Placed on Third Reading. (ESHB 1450)
  10. Passed to Rules Committee for second reading. (ESHB 1450)
  11. Minority; do not pass. (ESHB 1450)
  12. LBRC - Majority; do pass. (ESHB 1450)
  13. First reading, referred to Labor & Commerce. (ESHB 1450)
  14. Third reading, passed; yeas, 55; nays, 41; absent, 0; excused, 2. (ESHB 1450)
  15. Rules suspended. Placed on Third Reading. (ESHB 1450)
  16. Floor amendment(s) adopted. (ESHB 1450)
  17. 1st substitute bill substituted. (ESHB 1450)
  18. 1st substitute bill substituted.
  19. Placed on second reading by Rules Committee. (ESHB 1450)
  20. Placed on second reading by Rules Committee.
  21. Referred to Rules 2 Review. (ESHB 1450)
  22. Referred to Rules 2 Review.
  23. LAWS - Majority; 1st substitute bill be substituted, do pass. (ESHB 1450)
  24. Minority; do not pass. (ESHB 1450)
  25. Minority; do not pass.
  26. LAWS - Majority; 1st substitute bill be substituted, do pass.
  27. First reading, referred to Labor & Workplace Standards.

HB 1450 in other sessions

Bill numbers restart every two years, so the same number is a different bill in each session.

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