Are employers allowed to restrict an employee’s right to work for a competitor?
In Washington, employers are allowed to restrict an employee’s right to work for a competitor. This is known as a non-compete clause, which is a clause that is commonly included in an employment contract. A non-compete clause typically requires an employee to agree not to work for a competing business for a set period of time, either for a specific period of time or until the employee is no longer employed with the company. In Washington, the enforceability of non-compete clauses is governed by state law. Generally, a non-compete clause is only enforceable if it is reasonable with respect to the length of time it is in effect, the geographic area that it covers, and the type of work that is included in the agreement. Additionally, the clause cannot be so restrictive that it will prevent the employee from reasonably finding other work in the same industry or geographic area. To be enforceable, a non-compete clause must be in writing, signed by both parties prior to the formation of the contract, and supported by adequate consideration. If an employer violates any of these requirements, the non-compete clause may be deemed unenforceable by a court. Overall, employers in Washington may restrict an employee’s right to work for a competitor through a non-compete clause. However, the clause must be reasonable and in writing in order to be enforceable.
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