Practical Answers to Employment Law Issues
July 21, 2022 - Legislation, Non-Compete, Trade Secrets

D.C. Council Waters Down Non-Compete Ban While Keeping Some Significant Limitations

elc blog thumbnail

On July 12, 2022, the D.C. Council amended the Ban on Non-Compete Agreements Amendment Act of 2020 (the “Amendment”), walking back from an earlier version of the bill that, as previously discussed, contemplated a nearly total ban for employee non-competes. The Amendment, however, places significant limits on employee non-competes, including only permitting non-competes for certain highly compensated employees (currently earning $150,000 or more annually), limiting non-competes to a one-year, post-employment duration, mandating certain procedures and notices when entering non-competes, and adding anti-retaliation protections. Violations of the Amendment can result in monetary fines as well as administrative enforcement and private rights of action. Unless vetoed by Mayor Muriel Bowser or Congress, the Amendment is slated to go into effect on October 1, 2022.

Read our client alert.