Washington State has enacted several new employment laws with effective dates this month. Here is a summary of what employers need to know:

Microchipping Employees Is Prohibited (HB 2303)

Effective June 11, 2026

Effective June 11, employers may not require or even request that employees have a microchip implanted under their skin. The only exception covers medical devices connected to an existing health condition, and only where the device transmits information strictly necessary for treating or preventing that condition.

Washington joins 14 other states (Alabama, Arkansas, California, Indiana, Missouri, Mississippi, Montana, Nevada, New Hampshire, North Dakota, Oklahoma, Utah, and Wisconsin) in enacting similar laws.  So why was this necessary? Were employers in these states really requiring their employees to implant a company-sponsored microchip? Not quite. While a handful of companies have implemented microchipping in their business in some fashion, these laws are largely preventive measures, designed to prohibit such practices before the technology becomes more widespread.

Practical Takeaway for Employers: This law is unlikely to affect most employers, but if your organization has explored or piloted any implantable tracking technology, discontinue those programs immediately and review any related policies.

Wage Violations Just Got Significantly More Expensive (HB 2479)

Effective June 11, 2026

Washington has substantially expanded the enforcement authority of the Department of Labor and Industries (DOLI) with respect to wage violations. Key changes include:

• The $20,000 penalty cap is eliminated. Willful wage violations can now be penalized up to the full amount of unpaid wages, plus interest, with no ceiling.

• A penalty matrix is coming. DOLI will develop a formula weighing factors such as the number of affected employees, severity of the violation, business size, compliance history, and whether the employer acted in good faith. Repeat violations will result in higher penalties.

• A $1,500 minimum penalty per employee applies to all willful violations, regardless of the dollar amount of wages at issue.

• DOLI can now investigate proactively. The agency is no longer limited to responding to complaints. If DOLI has reason to believe a violation has occurred or is about to occur, it may open an investigation on its own and consolidate cases involving similar issues across employees.

• Penalties will increase automatically beginning in 2030 and every three years thereafter, adjusted for inflation.

• A limited waiver option exists for employers who are not repeat offenders, have not settled more than one wage complaint in the past 12 months (or three in the past 24 months), and pay all wages and interest owed within 10 business days of receiving a DOLI notice.

Practical Takeaway for Employers: Review your wage and hour practices now, particularly around overtime, meal and rest breaks, and final pay obligations. Given that DOLI can now investigate proactively and without a complaint, internal audits are a necessity. If you identify a potential violation, addressing it promptly and in good faith will impact any penalties assessed.

Washington Creates a Backstop for Private Sector Labor Disputes (HB 2471)

Effective June 11, 2026

The Public Employment Relations Commission (PERC), which has historically handled public sector labor matters, is now authorized to step in on private sector labor disputes under certain conditions. Specifically, PERC’s authority is triggered if the NLRB loses jurisdiction, declines to act, or if federal law ceases to preempt state regulation of private sector labor relations. When triggered, PERC would handle bargaining unit determinations, union certifications, unfair labor practice adjudications, and arbitration.

This law comes with a significant caveat. California and New York enacted similar legislation last year, and the NLRB has sued both states. A federal district court has already issued a preliminary injunction blocking California’s version while that litigation continues. Whether Washington’s law will ever take effect in a meaningful way may depend on how those cases are resolved.

Practical Takeaway for Employers: No immediate action is required, but employers with unionized or organizing workforces should monitor the California and New York litigation closely. If federal labor enforcement continues to contract, this law could become highly relevant quickly.

Noncompete Agreements Are Now Void (HB 1155)

Effective June 30, 2026

Noncompete agreements are no longer enforceable in Washington as of June 30. It does not matter when they were signed. Employers have until October 1, 2027 to notify any current or former employees or contractors who signed a noncompete agreement that is still active. The notice simply needs to inform the current or former employees that the restriction no longer applies.

Two things worth noting: confidentiality agreements are not affected by this law, and non-solicitation agreements are still permitted. Non-solicitation provisions must be limited to 18 months following the end of employment and can only cover workers who had a direct relationship with the relevant customer or employee.

The penalties for noncompliance are significant. Employers face actual damages or a $5,000 statutory penalty per violation, whichever is greater, plus attorneys’ fees. The state attorney general is also authorized to bring claims on behalf of employees.

Practical Takeaway for Employers: Audit your noncompete agreements now. Identify anyone whose agreement is still within its effective period, prepare compliant written notices, and work with counsel to revise your onboarding templates and employment contracts before June 30.

The lawyers at MHS are able to assist with any policy review or modification in light of these new laws.