In Washington, does the annual earnings threshold for non-competition agreements related to Bw Premier Collection employees and independent contractors remain constant?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
xtent that they reflect the franchisor'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 Hotel Owner, 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 Hotel Owner 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 Distributio
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to the 2025 Bw Premier Collection FDD, the annual earnings thresholds for non-competition agreements in Washington State are subject to annual adjustments for inflation. For an employee of a Bw Premier Collection Hotel Owner, a noncompetition covenant is void and unenforceable if the employee's annualized earnings do not exceed $100,000 per year. For an independent contractor of a Bw Premier Collection Hotel Owner, the noncompetition covenant is void and unenforceable if their annualized earnings do not exceed $250,000 per year. These earnings thresholds are adjusted annually for inflation.
This means that the specific dollar amounts that trigger the enforceability of non-competition agreements for Bw Premier Collection employees and independent contractors in Washington may change each year based on inflation rates. A Bw Premier Collection franchisee needs to be aware of the current thresholds to ensure that any non-competition agreements they use comply with Washington law.
It is important for prospective Bw Premier Collection franchisees to consult with legal counsel to stay informed about the most up-to-date earnings thresholds and ensure their non-competition agreements are enforceable under Washington law. This is particularly crucial because any provisions in the Distribution Agreement that conflict with these limitations are void and unenforceable in Washington.