Effective October 1, 2022, employers with employees who provide a significant portion of their services in the District of Columbia (“D.C.”) are impacted by two important changes: (i) the expansion of mandatory paid leave applicable under D.C. law to such employees, and (ii) restrictions regarding the ability to enter into and enforce non-competes with such employees.
1. D.C. Provides Expanded Paid Leave for Private Sector Employees
Effective October 1, 2022, the number of weeks of paid leave available to eligible individuals in D.C. under the Universal Paid Leave Act of 2015 (the “Paid Leave Act”) will increase. The Paid Leave Act, one of the most generous paid leave laws in the country when enacted, most recently provided eligible individuals (i) eight weeks of paid parental leave1, (ii) six weeks of paid family leave2, (iii) six weeks of paid personal medical leave3, and (iv) two weeks of paid prenatal leave, up to a maximum of eight weeks paid leave in any fifty-two-workweek period. Prior to October 1, 2022, such leave was funded by an increase in D.C. employer payroll taxes equal to 0.62% of each employee’s wages.
Under the Paid Leave Act, individuals eligible for benefits generally include individuals who work in D.C. and no more than 50% in another jurisdiction. This includes individuals employed by a covered employer at the time of the application for benefits and self-employed individuals who opt into and enroll in the paid leave program. Under the Paid Leave...
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