WA People
BILL · 2019–20 SESSION · LATEST VERSION ESSB 5478

SB 5478: Noncompetition covenants

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

Summary

  • Makes noncompetition covenants unenforceable unless an employee earns more than $100,000 per year.
  • Creates a presumption that a noncompetition covenant longer than 18 months is unreasonable and unenforceable.
  • Establishes other provisions relating to competition and creates remedies.

From the Engrossed Substitute House Bill Report (ESSB 5478), written by the Legislature's nonpartisan staff. Read the full report ↗

Did not pass Did not pass · passed Senate, stalled in House
  1. IntroducedJan 22, 2019
  2. Out of committeeFeb 15, 2019
  3. Passed SenateMar 5, 2019
  4. Passed Housestopped here
  5. Governor
  6. Law
Prime sponsor
Marko Liias (D-21)
Introduced
January 22, 2019 in the Senate
Last action
January 13, 2020
Companion bill
HB 1450
Versions
SB 5478, ESSB 5478

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

Sponsors

Prime sponsor: Marko Liias (D-21)

6 co-sponsors (6 Democrats, 0 Republicans)

Karen Keiser D-33Steve Conway D-29Senator D-22Jamie Pedersen D-43Patty Kuderer D-48John McCoy D-38

Votes

Senate · 3rd Reading & Final Passage

Passed March 5, 2019
Version voted on: ESSB 5478
30 Yea 18 Nay 0 Absent 1 Excused
PartyYeaNayAbsentExcused
Democrat28100
Republican21701
How each member voted

Excused (1)

Permalink to this vote

History

  1. Senate Rules "X" file. (ESSB 5478)
  2. By resolution, reintroduced and retained in present status. (ESSB 5478)
  3. By resolution, returned to Senate Rules Committee for third reading. (ESSB 5478)
  4. Referred to Rules 2 Consideration. (ESSB 5478)
  5. Rules Committee relieved of further consideration. Placed on second reading. (ESSB 5478)
  6. Referred to Rules 2 Review. (ESSB 5478)
  7. Minority; do not pass. (ESSB 5478)
  8. LAWS - Majority; do pass. (ESSB 5478)
  9. First reading, referred to Labor & Workplace Standards. (ESSB 5478)
  10. Third reading, passed; yeas, 30; nays, 18; absent, 0; excused, 1. (ESSB 5478)
  11. Rules suspended. Placed on Third Reading. (ESSB 5478)
  12. Floor amendment(s) adopted. (ESSB 5478)
  13. 1st substitute bill substituted. (ESSB 5478)
  14. 1st substitute bill substituted.
  15. Placed on second reading by Rules Committee. (ESSB 5478)
  16. Placed on second reading by Rules Committee.
  17. Passed to Rules Committee for second reading. (ESSB 5478)
  18. Passed to Rules Committee for second reading.
  19. LBRC - Majority; 1st substitute bill be substituted, do pass. (ESSB 5478)
  20. Minority; do not pass. (ESSB 5478)
  21. Minority; do not pass.
  22. LBRC - Majority; 1st substitute bill be substituted, do pass.
  23. First reading, referred to Labor & Commerce.

SB 5478 in other sessions

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

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