NON-COMPETITION AGREEMENTS AND INTELLECTUAL PROPERTY PROTECTION
Washington
will enforce non-competition agreements so long as there is a valid
contract. There are many contract
issues, but one issue involves “consideration.”
Consideration is a bargain for exchange of promises or things, and is
required for an enforceable contract. If
the non-competition is supported by adequate consideration, it likely will be
valid. Adequate consideration exists if
the employee enters into the non-competition agreement when he or she is first
hired. However, courts have invalidated
non-competition agreements when provided to employees after a period of
employment, and when no extra consideration has been provided to the
employee.
Non-competition agreements are also reviewed as to whether they contain reasonable restraints. Washington courts generally will enforce non-competition agreements if the restraint is necessary for the protection of the business, it imposes no greater restraint than necessary to protect the employer’s business, and the degree of injury to the public in terms of the loss of the employee’s service is not significant. Almost all non-competition agreements have some length of time during which the departed employee may not engage in competitive activities. Washington has upheld restraints ranging from a few months to several years.
Non-competition agreements are also reviewed as to whether they contain reasonable restraints. Washington courts generally will enforce non-competition agreements if the restraint is necessary for the protection of the business, it imposes no greater restraint than necessary to protect the employer’s business, and the degree of injury to the public in terms of the loss of the employee’s service is not significant. Almost all non-competition agreements have some length of time during which the departed employee may not engage in competitive activities. Washington has upheld restraints ranging from a few months to several years.