On page 1, after line 6, insert the following:

"NEW SECTION.  Sec. 1. (1) The legislature finds that noncompetition covenants hinder innovation and entrepreneurship, suppress wages, reduce job mobility, and ultimately harm consumers and the economy. In 2019 the legislature took a critical step forward by banning the use of noncompetition covenants for lower-wage earners. This did not go far enough. Research shows that noncompetition covenants restrict workers' mobility, impede efforts to correct inequities, and significantly suppress workers' wages across all sectors, including for those not subject to covenants, or subject to covenants that are unenforceable under state law. Even among supposed high-wage earners, the suggestion that these covenants are bargained is largely a legal fiction. Noncompetition covenants are often unilaterally imposed by employers and businesses without meaningful negotiation. Businesses have more specific and effective legal means to protect intellectual property, trade secrets, and clients without harming workers, contractors, and the public.

(2) The evidence is clear. Banning noncompetition covenants will incentivize innovation and entrepreneurship, increase wages, and even reduce health care costs. To that end, in 2024 the federal trade commission adopted rules banning noncompetition covenants nationwide. Unfortunately, the implementation of those rules has been halted by ongoing litigation. Washington's workers and businesses should not have to wait years for federal court rulings on a nationwide ban when the state has the authority to extend these protections.

(3) The legislature hereby intends to ban noncompetition covenants for all Washington-based workers and businesses. Yet the legislature recognizes the limitations of a state ban. Workers in all jurisdictions need these same protections. But other states may be slow to act or will not act despite compelling economic interests. The state also does not intend for this act to modify or interfere with the sovereignty of tribal nations or with their exclusive jurisdiction to govern employment standards for employees working in Indian country for a business owned by a federally recognized tribe or tribal member. By joining other states that have banned noncompetition covenants, Washington will demonstrate the benefits to other states, tribes, and jurisdictions. Let the actions of this legislature to improve prosperity for all pave the way for the nation."

Renumber the remaining sections consecutively and correct any internal references accordingly.

Correct the title.