In Washington state, what is the minimum annualized earnings threshold for a Fat Shack franchisee's employee for a noncompetition covenant to be enforceable?

According to Fat Shack's 2025 Franchise Disclosure Document, in Washington state, a noncompetition covenant is void and unenforceable against a Fat Shack franchisee's employee unless the employee's earnings, when annualized, exceed $100,000 per year. This amount will be adjusted annually for inflation. This stipulation is pursuant to RCW 49.62.020.

This means that if a Fat Shack 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 amount, the non-compete agreement is not legally enforceable. This protects lower-earning employees from being unduly restricted in their future employment opportunities.

For independent contractors of a Fat Shack franchisee in Washington, a noncompetition covenant is void and unenforceable if their earnings from the party seeking enforcement, when annualized, exceed $250,000 per year, also adjusted annually for inflation. This is pursuant to RCW 49.62.030. Any provisions in the franchise agreement that conflict with these limitations are void and unenforceable in Washington.