What is the minimum annualized earnings threshold for an employee of a City Publications franchisee in Washington for a noncompetition covenant to be enforceable?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
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).
As a result, any provisions contained in the franchise agreement or elsewhere that conflict with these limitations are void and unenforceable in Washington.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to the 2025 City Publications Franchise Disclosure Document, a noncompetition covenant applied to an employee of a City Publications franchisee in Washington is only enforceable if the employee's annualized earnings exceed $100,000. This figure will be adjusted annually for inflation. This is based on Washington state law RCW 49.62.020.
This means that if a City Publications franchisee in Washington wants to enforce a non-compete agreement against an employee, that employee must be earning at least $100,000 per year, or the adjusted amount for inflation at the time of enforcement. If the employee earns less than this amount, the non-compete agreement is void and unenforceable under Washington law.
This provision protects lower-earning employees from being unduly restricted in their future employment opportunities. It also means that City Publications franchisees in Washington need to be aware of this earnings threshold when drafting and attempting to enforce non-compete agreements with their employees. The FDD also states that any conflicting provisions in the franchise agreement are void and unenforceable in Washington.