Does the $100,000 earnings threshold for non-compete agreements for City Publications franchisee employees in Washington get adjusted annually?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
fter the agreement is in effect and where the parties are represented by independent counsel. Provisions such as those which unreasonably restrict or limit the statute of limitations period for claims under the Act, or rights or remedies under the Act such as a right to a jury trial, may not be enforceable. Transfer fees are collectable to the extent 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 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 noncomp
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, in the state of Washington, a noncompetition covenant is void and unenforceable against an employee of a franchisee if the employee's annualized earnings from the party seeking enforcement exceed $100,000 per year. This amount is subject to annual adjustments for inflation.
Similarly, a noncompetition covenant is unenforceable against an independent contractor of a City Publications franchisee in Washington if their annualized earnings from the enforcing party exceed $250,000 per year, which is also adjusted annually for inflation. This means that City Publications franchisees in Washington cannot enforce non-compete agreements against employees or independent contractors who earn above these inflation-adjusted thresholds.
This provision is important for prospective City Publications franchisees in Washington because it limits their ability to restrict former employees or contractors from competing with their business if those individuals meet the specified earnings criteria. Franchisees should factor this legal limitation into their business planning and employee agreements.