Washington State Employee Non-Compete (RCW 49.62) & IP Assignment (RCW 49.44.140) Redline
Washington State has some of the strongest statutory employee protections in the country under RCW 49.62 (recently strengthened by SB 5935) and RCW 49.44.140: (1) Non-competes are void unless total annualized compensation exceeds the inflation-adjusted statutory threshold (~$120,559+ for W-2 employees and ~$301,399+ for 1099 contractors), cannot exceed 18 months, and IF you are terminated via layoff, the non-compete is VOID unless the employer pays your full base salary during the entire restriction period! (2) Under RCW 49.44.140, employers must give written notice that side inventions created on your own time belong to you.
Senior Engineer’s Weekend AI SaaS Side-Project Claimed by Employer During Series A Diligence
A staff engineer built an unrelated dev-tool on nights and weekends using his personal MacBook, then left to raise a Series A. Because his prior CIIAA swept in all inventions created "during the period of employment" and claimed it "related to Company’s anticipated R&D," the former employer blocked the VC round until paid $350,000.
RedlineCore™ enforces the statutory off-duty invention carve-out (CA Labor Code § 2870 / WA / IL / NY standards) and attaches an explicit Prior & Side-Project Invention Schedule.
Check Your Full Contract PDF for Cross-Section Overrides (Free 60s Scan)
Fixing one clause alone often fails when a buried definition, exhibit, or survival clause elsewhere in your Commercial Property & Business Loss neutralizes your protection. Drop your PDF or Word (.docx) below for an instant, 100% anonymous cross-section audit.
“Washington RCW 49.62 & RCW 49.44.140 Statutory Compliance: (a) Pursuant to RCW 49.62.020, any non-competition covenant shall not exceed 12 months, is void unless Employee’s compensation exceeds the statutory threshold, and shall be completely void upon any layoff or termination without Cause unless Company pays Employee’s full base salary during the restricted period; (b)
What to Say to the Commercial Lines Carrier / E&S Insurer
"Since I reside and work in Washington State, RCW 49.62 requires Washington governing law, voids any non-compete upon layoff unless full base salary is paid during the restriction, and RCW 49.44.140 protects my independent side inventions on Exhibit A."
Why they drafted it this way: Out-of-state tech employers try to insert Delaware or Texas choice-of-law clauses into remote Seattle/Bellevue employment agreements to bypass RCW 49.62’s salary floor and mandatory layoff garden-leave pay.
Mandatory Audit Checklist Points
- Enforce RCW 49.62.050: Washington employees cannot be forced into out-of-state (e.g., Delaware) choice of law to evade WA non-compete rules
- Enforce RCW 49.62.020(1)(c): If laid off, the non-compete is 100% void unless the employer pays your base salary for the entire restricted period
- Include the mandatory RCW 49.44.140(3) employee invention carve-out notice and list Prior Inventions on Exhibit A
Paste Your Washington RCW 49.62 non-compete RCW 49.44.140 IP assignment redline Section or Upload Your Full Commercial Property & Business Loss (.pdf / .docx)
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Frequently Asked Questions
What happens to a Washington non-compete if I get laid off?
Under RCW 49.62.020(1)(c), a non-compete agreement is legally void and unenforceable if the employee is terminated as the result of a layoff, UNLESS the employer pays the employee their base salary for the entire period of enforcement (less compensation earned from subsequent non-competing employment).
How do I redline Washington RCW 49.62 non-compete RCW 49.44.140 IP assignment redline traps in my Commercial Property & Business Loss anonymously without creating an account?
Upload your Commercial Property & Business Loss PDF or Word (.docx) draft to ClaimXray.com to run the "Washington State Employee Non-Compete (RCW 49.62) & IP Assignment (RCW 49.44.140) Redline" defense cartridge 100% anonymously—with zero account registration, zero email login, and stateless in-memory processing. RedlineCore™ 4.0 flags Washington RCW 49.62 non-compete RCW 49.44.140 IP assignment redline exposure (typically $75,000 – $350,000 in statutory Garden Leave pay & personal IP ownership; documented unredlined loss: $350,000 settlement share forfeiture to former employer), checks for cross-section overrides, and exports a ready-to-send Microsoft Word (.docx) Track-Changes file.
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View All Commercial Property & Business Loss PlaybooksIllinois Freedom to Work Act (820 ILCS 90) Non-Compete & IP Assignment Redline Auditor
Under the Illinois Freedom to Work Act (820 ILCS 90/1 et seq.), an employer’s non-compete or non-solicitation covenant is illegal and void unless: (1) the employee earns above the statutory salary floor ($75,000+ for non-competes / $45,000+ for non-solicits, escalating every 5 years); (2) the employer gives 14 calendar days to review the covenant before starting; AND (3) where "at-will employment alone" is the consideration, the employee actually works for the employer for at least 2 full years after signing (or receives equivalent financial/professional consideration)! In addition, the Illinois Employee Patent Act (765 ILCS 1060/2) protects personal inventions.
Massachusetts Noncompetition Agreement Act (M.G.L. c. 149, § 24L) Garden Leave Redline
Under the Massachusetts Noncompetition Agreement Act (M.G.L. c. 149, § 24L), any post-employment non-compete signed by a Massachusetts resident or employee is STATUTORILY UNENFORCEABLE if you are laid off or terminated without Cause! Furthermore, even if you resign voluntarily, § 24L requires the agreement to include either a "Garden Leave Clause" paying at least 50% of your highest annualized base salary during the restricted period OR "other mutually-agreed upon consideration" explicitly specified in the contract—which employers constantly try to replace with a token "$1,000 signing bonus" loophole!
Colorado Non-Compete Statute (C.R.S. § 8-2-113) & Overbroad NDA Redline Auditor
Colorado’s restrictive covenant statute (C.R.S. § 8-2-113) imposes a $5,000 per-worker statutory penalty plus attorney fees on employers who even *present* an unlawful non-compete! Under C.R.S. § 8-2-113, non-competes are void unless you earn at or above the Colorado "Highly Compensated Worker" threshold (~$123,750+, adjusted annually) AND the employer delivers a separate, standalone signed statutory notice before you accept the offer. Even more importantly, § 8-2-113(2)(b) voids Confidentiality/NDA clauses that prohibit using "general training, knowledge, skill, or experience" gained on the job!
Executive IRS Section 409A Deferred Compensation & 20% Penalty Redline
Under Internal Revenue Code Section 409A, if your employment or severance agreement promises installment severance or deferred bonuses without strict 409A savings language—or allows the timing of when you sign a Release in December vs. January to shift which tax year severance begins—the IRS imposes a brutal 20% federal penalty tax PLUS premium interest entirely on YOU (the Executive), not the Employer.