The state of Washington has passed, and the governor is expected to sign, a new law that would limit noncompete clauses in company contracts with employees and independent contractors.

Scheduled to take effect Jan. 1, the new law would prohibit all noncompetition agreements for employees whose W-2 earnings are less than $100,000 annually, and for independent contractors paid less than $250,000 per year. Those amounts would be adjusted annually for inflation.