WA People
BILL · 2023–24 SESSION · LATEST VERSION SSB 5935

SB 5935: Noncompetition covenants

Concerning noncompetition covenants.

Summary

  • Amends the definition of "noncompetition covenant" to: (1) include agreements that directly or indirectly prohibit the acceptance or transaction of business with a customer; and (2) exclude covenants where the person signing the covenant purchases, sells, acquires, or disposes of an interest representing 1 percent or more of the business.
  • Makes changes related to: (1) circumstances under which noncompetition covenants are void and unenforceable; (2) causes of action by aggrieved persons; (3) displacement of other laws; and (4) statutory construction.

From the Substitute House Bill Report (SSB 5935), written by the Legislature's nonpartisan staff. Read the full report ↗

Enacted Enacted · Chapter 36, Laws of 2024
  1. IntroducedJan 8, 2024
  2. Out of committeeJan 24, 2024
  3. Passed SenateFeb 6, 2024
  4. Passed HouseFeb 22, 2024
  5. GovernorMar 13, 2024
  6. LawMar 13, 2024
Prime sponsor
Derek Stanford (D-1)
Introduced
January 8, 2024 in the Senate
Last action
March 13, 2024
Session law
Chapter 36, Laws of 2024
Budget
Has a fiscal note
Versions
SB 5935, SSB 5935

AN ACT Relating to noncompetition covenants;

Sponsors

Prime sponsor: Derek Stanford (D-1)

8 co-sponsors (8 Democrats, 0 Republicans)

Karen Keiser D-33Steve Conway D-29Manka Dhingra D-45Noel Frame D-36Patty Kuderer D-48Marko Liias D-21T'wina Nobles D-28Rebecca Saldaña D-37

Votes

Senate · 3rd Reading & Final Passage

Passed February 6, 2024
Version voted on: SSB 5935
29 Yea 20 Nay 0 Absent 0 Excused
PartyYeaNayAbsentExcused
Democrat29000
Republican02000
How each member voted
Permalink to this vote

House · 3rd Reading & Final Passage

Passed February 22, 2024
Version voted on: SSB 5935
55 Yea 38 Nay 0 Absent 5 Excused
PartyYeaNayAbsentExcused
Democrat55201
Republican03604
How each member voted

Yea (55)

Permalink to this vote

History

  1. Effective date 6/6/2024. (SSB 5935)
  2. Chapter 36, 2024 Laws. (SSB 5935)
  3. Governor signed. (SSB 5935)
  4. Delivered to Governor. (SSB 5935)
  5. Speaker signed. (SSB 5935)
  6. President signed. (SSB 5935)
  7. Third reading, passed; yeas, 55; nays, 38; absent, 0; excused, 5. (SSB 5935)
  8. Rules suspended. Placed on Third Reading. (SSB 5935)
  9. Rules Committee relieved of further consideration. Placed on second reading. (SSB 5935)
  10. Referred to Rules 2 Review. (SSB 5935)
  11. Minority; do not pass. (SSB 5935)
  12. LAWS - Majority; do pass. (SSB 5935)
  13. LAWS - Executive action taken by committee. (SSB 5935)
  14. First reading, referred to Labor & Workplace Standards. (SSB 5935)
  15. Third reading, passed; yeas, 29; nays, 20; absent, 0; excused, 0. (SSB 5935)
  16. Rules suspended. Placed on Third Reading. (SSB 5935)
  17. 1st substitute bill substituted. (SSB 5935)
  18. 1st substitute bill substituted.
  19. Placed on second reading by Rules Committee. (SSB 5935)
  20. Placed on second reading by Rules Committee.
  21. Passed to Rules Committee for second reading. (SSB 5935)
  22. Passed to Rules Committee for second reading.
  23. LC - Majority; 1st substitute bill be substituted, do pass. (SSB 5935)
  24. Minority; do not pass. (SSB 5935)
  25. Minority; without recommendation. (SSB 5935)
  26. Minority; without recommendation.
  27. Minority; do not pass.
  28. LC - Majority; 1st substitute bill be substituted, do pass.
  29. First reading, referred to Labor & Commerce.
  30. Prefiled for introduction.

SB 5935 in other sessions

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

Report wrong or missing information on this page