What is the minimum annualized earnings threshold for an employee of a Petro Stopping Center franchisee in Washington for a noncompetition covenant to be enforceable?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
ht to a jury trial may not be enforceable.
-
- Transfer fees are collectable to the extent that they reflect 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 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 noncompetition covenant is void and unenforceable against an independent contractor of Franchisee under RCW 49.62.030 unless the independent contractor's earnings from the party seeking enforcement, when annualized, exceed $250,000 per year (an amount that will be
Source: Item 4 — Other Owners: (FDD pages 228–302)
What This Means (2025 FDD)
According to the 2025 Petro Stopping Center Franchise Disclosure Document, a noncompetition covenant is void and unenforceable against an employee in Washington unless the employee's earnings from the party seeking enforcement, when annualized, exceed $100,000 per year. This amount will be adjusted annually for inflation. This protection extends to employees of the franchisee.
This means that if a Petro Stopping Center franchisee in Washington wants to enforce a non-compete agreement against an employee, that employee must earn 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 provision is in place to protect lower-earning employees from being unduly restricted in their future employment opportunities.
This stipulation is important for prospective Petro Stopping Center franchisees in Washington to understand, as it affects their ability to restrict employees from working for competitors after leaving their employment. Franchisees need to be aware of this earnings threshold when drafting employment agreements that include non-competition clauses. They should consult with legal counsel to ensure their agreements comply with Washington state law.