Employers with employees in the District of Columbia have until Monday, October 31, 2022, to comply with a specific notice provision contained in the D.C. Non-Compete Clarification Amendment Act of 2022 (B24-0256) (the “Amendment”).

Non-Compete Provisions and Express Exceptions

As we previously wrote, the Amendment scales back the initial D.C. Ban on Non-Compete Agreements Amendment Act of 2020. While the Amendment still prohibits employers from binding most employees to non-compete agreements, employers may still enter into non-compete agreements with

1. “highly compensated employees,” i.e., those who are reasonably expected to earn at least $150,000 per year in total compensation from the employer; and
2. “medical specialists,” i.e., licensed physicians who receive at least $250,000 in total compensation per year from the employer.

Importantly, the Amendment also exempts from the law non-compete provisions that:

1. are contained within an agreement between the buyer and seller of a business;
2. constitute policies meant to prohibit moonlighting, conflicts of interest, the disclosure or misuse of confidential or proprietary information, or violations of D.C. or federal laws, regulations, contracts, or grant agreements; and
3. provide a long-term incentive.

Required Notices

Importantly, covered employers that have policies exempted from the law (e.g., anti-moonlighting, confidentiality, and/or conflict of interest policies and certain long-term incentive plans) must provide their...

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