Official Text and Analysis.

Makes noncompetition covenants unenforceable unless the employee earns more than three times the annual average wage.

Modifies the definition of earnings to: (1) The compensation reflected on box one of the employee's IRS form W-2 that is paid to an employee over the prior year, or portion thereof for which the employee was employed, annualized and calculated as of the earlier of the date enforcement of the covenant is sought or the date of separation from employment; or (2) payments reported on form 1099- MISC for independent contractors. Modifies exclusions from noncompete covenants to also include purchasing goodwill or acquiring an ownership interest in a business. Changes the amounts for making noncompete covenants void to: (a) $100,000, annualized, per year for employee's earnings and (b) $250,000 per year for payments to independent contractors. Both amounts are indexed for inflation annually by the Department of Labor and Industries. Removes the application of the additional work provisions when the additional services raise safety issues for the employee, coworkers, or the public, or interfere with the reasonable and normal scheduling expectations of the employer; and also provides that the provisions do not alter the employee's legal obligations to an employer, including the common law duty of loyalty and conflicts of interest laws. Limits a private right of action to a person aggrieved by a noncompetition covenant to which the person is a party. Allows the attorney general to pursue any and all relief. Provides that a cause of action may not be brought for a covenant signed prior to the effective date if the covenant is not being enforced. Removes the definition of average annual wage.

Changes the definition of "earnings" from the amount reported on the W-2 or 1099 to all monetary compensation, including the value of any benefits or other remuneration, such as health care benefits, retirement contributions, stock options, tuition reimbursement, vehicle or vehicle allowances, and mobile telephones.