In Washington, what is the annual earnings threshold for an employee of a City Publications franchisee for a noncompetition covenant to be enforceable?
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 enforceab
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 City Publications franchisee if the employee's annualized earnings from the party seeking enforcement do not exceed $100,000 per year. This amount is subject to annual adjustments for inflation. This stipulation is based on 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 more than $100,000 annually (adjusted for inflation). If the employee earns less than this threshold, the non-compete agreement is not legally enforceable. This protects lower-earning employees from being unduly restricted in their future employment opportunities.
This provision also highlights the importance of staying updated with Washington state laws, as the referenced Revised Code of Washington (RCW) sections can impact the enforceability of certain clauses within the franchise agreement. Franchisees should consult with legal counsel to ensure their employment agreements comply with current Washington state law, especially concerning non-competition covenants and earnings thresholds. This ensures that City Publications franchisees in Washington adhere to state regulations and avoid potential legal issues related to non-compete agreements.