Can an employment contract have a non-compete clause?

Yes, an employment contract can have a non-compete clause in Washington. A non-compete clause is a type of restrictive covenant that is included in an employment agreement to limit an employee’s ability to take part in similar businesses or start a competing business. The enforceability of a non-compete clause in Washington is governed by the state’s laws. Generally, an employer must prove that the non-compete clause is reasonable in scope and duration, and that it serves a legitimate business purpose. The clause must also be limited in geography and duration so that it only applies to conditions that are actually necessary to protect a legitimate business interest. In Washington, the courts will also assess other factors such as the employee’s experience and expertise, the need to protect the employer’s trade secrets, and the impact of the non-compete clause on the employee’s ability to make a living in their chosen field. If the clause is overly restrictive or harsh, it will likely be tossed out as unenforceable. In Washington, an employer cannot include a non-compete clause in an employment contract if the employee earns less than $100,000 per year. This ensures that lower-paid employees are not disadvantaged by such restrictive covenants. Ultimately, employers and employees must consider the specifics of a situation before deciding to agree to a non-compete clause in an employment contract.

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