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Thursday, October 8, 2026

D.C. Council Narrows Proposed Broad Ban on Non-Compete - The National Law Review

Since December 2020, when the D.C. City Council unanimously passed the Ban on Non-Compete Agreements Amendment Act of 2020 (the “Act”), which sought to impose one of the broadest prohibitions against employee non-compete agreements in the country, the impending law has been the subject of heavy opposition to its enactment by the D.C. business community. After multiple legislative postponements of the effective date to allow for debate and possible modification, on July 12, 2022, the D.C. City Council passed the Non-Compete Clarification Amendment Act of 2022 (the “Amended Act”), scaling back the near-total ban on non-competes originally created by the Act. The Amended Act now limits non-competes only to “highly compensated employees” (as defined) and clarifies that employers can prohibit an employee’s use, in addition to disclosure, of employers confidential and proprietary information both during and after employment. Once the Mayor signs the Amended Act, it is slated to take effect on October 1, 2022.

Key Takeaways from Amended Act

  • Employees are covered if (i) they spend (or, in the case of new hires, are reasonably anticipated to spend) over 50% of their work time for an employer in the District, or (ii) their work for an employer is based in the District, they regularly spend a substantial amount of their work time for that employer in the District, and they do not spend more than 50% of their work time for that employer in another jurisdiction.

  • Employers are...



Read Full Story: https://www.natlawreview.com/article/good-news-dc-employers-dc-council-narrow...