Does the $250,000 earnings threshold for non-compete agreements for City Publications franchisee independent contractors 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, the $250,000 earnings threshold for non-compete agreements pertaining to independent contractors working for a City Publications franchisee in Washington is adjusted annually for inflation. Specifically, Washington law RCW 49.62.030 states that a noncompetition covenant is unenforceable against an independent contractor if their annualized earnings from the party seeking enforcement do not exceed $250,000.
This means that if a City Publications franchisee in Washington wants to enforce a non-compete agreement against an independent contractor, the contractor must be earning more than the annually adjusted threshold. If the independent contractor's earnings are below this threshold, the non-compete agreement is void and unenforceable.
For a prospective City Publications franchisee in Washington, this is an important consideration when hiring independent contractors and drafting non-compete agreements. Franchisees need to be aware of the current earnings threshold and ensure that their agreements comply with Washington law to be enforceable. This also means that the franchisee should stay up-to-date on the annually adjusted amount to ensure compliance.