Worldwide: Employee Benefits & Compensation

On March 23, 2026, Washington Governor Bob Ferguson signed Engrossed Substitute House Bill 1155 (ESHB 1155), implementing an extensive noncompetition prohibition in Washington State. Beginning June 30, 2027, all noncompetition covenants are void and unenforceable unless they fall under an exception to the law. Employers will no longer be able to enforce or rely on contractual provisions that restrict an employee or contractor from engaging in a lawful profession or business after leaving a position.

The Chicago Office of Labor Standards (OLS) has proposed changes to the rules implementing the city’s Fair Workweek Ordinance.

Washington now joins a small but growing number of states that have declared non-competition covenants void and unenforceable. On March 23, 2026, Washington Gov. Bob Ferguson signed into law Engrossed Substitute House Bill 1155 (SB 1155), which effectively bans non-compete agreements for virtually all employees and independent contractors in Washington state. The law takes effect on June 30, 2027.