In Washington, what is the minimum annualized earnings threshold for an employee of an Engel & Volkers franchisee for a noncompetition covenant to be enforceable?

According to Engel & Volkers's 2025 Franchise Disclosure Document, specifically the addendum for Washington State, a noncompetition covenant is void and unenforceable against an employee of an Engel & Volkers franchisee in Washington unless the employee's annualized earnings exceed $100,000 per year. This amount will be adjusted annually for inflation. This protection is provided under RCW 49.62.020, a section of the Revised Code of Washington.

This means that if an Engel & Volkers franchisee in Washington wants to enforce a non-compete agreement against an employee, that employee must be earning at least $100,000 annually (adjusted for inflation). If the employee earns less than this amount, the non-compete agreement is not legally enforceable. This addendum clarifies that Washington state law supersedes any conflicting terms in the standard Engel & Volkers franchise agreement.

For a prospective Engel & Volkers franchisee in Washington, this information is crucial for understanding the limitations on non-competition agreements with employees. It highlights the importance of structuring employment agreements in compliance with Washington state law, particularly regarding compensation thresholds for enforceability. Franchisees should consult with legal counsel to ensure their non-compete agreements are compliant and enforceable, considering the annual inflation adjustments to the earnings threshold.