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Washington Supreme Court hears challenge to broad noncompete for low-wage workers

Supreme Court · September 24, 2024
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Summary

The Washington Supreme Court heard arguments Sept. 24 in Jeremy David and Mark Springer v. Freedom Vans over whether RCW 49.62.070 bars employers from imposing sweeping noncompete clauses on lower-wage employees. Petitioners say the clause exceeds the common-law duty of loyalty; the respondent invokes statutory exceptions and record evidence of direct competition.

The Washington Supreme Court on Sept. 24 heard oral argument in Jeremy David and Mark Springer v. Freedom Vans, a dispute over whether RCW 49.62.070 prohibits employers from imposing broad noncompete or 'moonlighting' clauses on lower-wage employees.

Petitioners’ counsel, Mike Zubit, told the court the legislature amended noncompetition law to increase workforce mobility and that, “an employer may not restrict, restrain, or prohibit an employee earning less than twice the applicable state minimum hourly wage from having an additional job or supplementing their income,” except as provided in the statute’s limited exceptions. Zubit argued that Freedom Vans’ agreement required two employees — a carpenter and an electrician — to sign a nonnegotiable covenant barring any second job with any employer that competes with Freedom…

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