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Thursday, October 8, 2026

D.C. Council Passes Law Significantly Scaling Back Non-Compete Ban - Employee Benefits & Compensation - United States - Mondaq

On July 12, 2022, the District of Columbia Council voted to modify key aspects of the Ban on Non-Compete Agreements Amendment Act ("the Act"), passing the Non-Compete Clarification Amendment Act of 2022 ("the Amendment"). As we previously reported, the Act, which was enacted in January 2021 but has yet to take effect, sought to impose the broadest non-compete prohibition in the country, barring, with narrow exceptions, all simultaneous and post-termination employment restrictions for employees in D.C. Since its inception, the Act has been subject to criticism which has led to numerous extensions of its applicability date.

Now, in response to those criticisms, the D.C. Council has taken action. The Amendment, if signed into law as expected (and not blocked by Congress), contains a number of significant "clarifications" to the Act and gives employers with D.C. employees options for utilizing non-competition agreements and other policies – such as conflict of interest policies – that were to be banned by the Act. As discussed in detail below, the Amendment, among other things, narrows the coverage of its non-competition restrictions, permits the entry into non-competes with "highly compensated individuals" (subject to certain requirements), permits the inclusion of non-competition provisions in long term incentive agreements, and contains numerous carve outs permitting certain common employer limitations on simultaneous employment (such as conflict of interest policies). As...



Read Full Story: https://www.mondaq.com/unitedstates/employee-benefits-compensation/1214556/dc...