What is the earnings threshold for a noncompetition covenant to be enforceable against a Bumble Roofing franchisee's employee in Washington?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
chisor's reasonable estimated or actual costs in effecting a transfer.
Pursuant to RCW 49.62.020, a noncompetition covenant is void and unenforceable against an employee, including an employee of a franchisee, unless the employee's earnings from the party seeking enforcement, when annualized, exceed $100,000 per year (an amount that will be adjusted annually for inflation). In addition, a noncompetition covenant is void and unenforceable against an independent contractor of a franchisee under RCW 49.62.030 unless the independent contractor's earnings from the party seeking enforcement, when annualized, exceed $250,000 per year (an amount that will be adjusted annually for inflation). As a result, any provisions contained in the franchise agreement or elsewhere that co
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–45)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, a noncompetition covenant is void and unenforceable against an employee of a Bumble Roofing franchisee in Washington unless the employee's annualized earnings from the party seeking enforcement exceed $100,000 per year. This amount will be adjusted annually for inflation. This is based on Washington state law (RCW 49.62.020).
This means that Bumble Roofing franchisees in Washington cannot enforce non-compete agreements against employees who earn less than $100,000 annually (adjusted for inflation). This limitation is designed to protect lower-earning employees from being unduly restricted in their future employment opportunities.
For a Bumble Roofing franchisee, this has significant implications for hiring and retaining employees. The franchisee needs to be aware of this earnings threshold when drafting and attempting to enforce non-compete agreements. Any non-compete agreement that violates this provision is void and unenforceable in Washington. Franchisees should consult with legal counsel to ensure their non-compete agreements comply with Washington law.