Governor Ferguson signs bills establishing rules for penny shortage, banning noncompetes, expanding fatal crash reviews

OLYMPIA - Governor Bob Ferguson signed new laws today establishing rules for how businesses handle penny shortages, banning noncompete agreements statewide, and expanding the Washington State Traffic Safety Commission's access to data to review fatal crashes.

The legislation was part of a slate of more than 40 bills Governor Ferguson signed in Olympia today. Video of the signings are available hereand here. Photos are available here.

New rules for pennies - House Bill 2334

House Bill 2334, sponsored by Rep. April Berg (D - Mill Creek), establishes rules for businesses to follow on when to round prices up or down to the nearest 5-cent increment for cash transactions. Since the federal government discontinued production of the penny, it has not provided guidance on how to adjust cash transactions as the penny grows more scarce.

HB 2334 establishes asymmetrical rounding for cash payments, rounding to the nearest nickel. Totals ending in 1 or 2 cents round down to 0; totals ending in 3, 4, 6, or 7 cents round to 5; and totals ending in 9 or 9 cents round up to 10. Electronic payments, credit cards, and other non-cash transactions are unaffected.

This provides predictability for consumers and clear guidance for businesses.

Banning noncompete agreements - House Bill 1155

House Bill 1155, sponsored by Rep. Liz Berry (D - Seattle), bans the use of noncompete agreements between businesses and workers.

This builds on previous legislation passed in 2019 limiting noncompete agreements to workers earning more than $100,000.

As Attorney General, Governor Ferguson successfully enforced the state's ban on noncompetesagainst Tradesmen International. As a result of the Attorney General investigation, the company ended its unlawful use of noncompetes and paid $287,000 back to workers.

Fatal crash reviews - House Bill 2192

House Bill 2192, sponsored by Rep. Sam Low (R - Lake Stevens), expands the authority of the Washington Traffic Safety Commission to conduct fatal crash reviews. Data from fatal car accidents can help inform policy, practices, and funding decisions that help keep us safe on the roads. HB 2192 gives the commission additional authority to examine factors that can help identify why crashes happen.

Governor Ferguson highlighted this important legislation in his State of the State address in January.