After hearing concerns about the broad scope of the Ban on Non-Compete Agreement Act of 2020, multiple amendments to the legislation were introduced. Here's what this means for D.C. employers.
Over the last two years, the Council of the District of Columbia has postponed and revised the Ban on Non-Compete Agreement Act of 2020—a law that was set to widely prohibit employers from imposing non-compete agreements onto employees. The bill was signed into law in January 2021 and scheduled to be enforceable on October 1, 2021. After hearing concerns about the broad scope of the bill, the sponsor, Councilmember Elisa Silverman introduced multiple amendments to the legislation, and enforcement of the ban was pushed back to April 2022 and again to October 2022.
The original ban on non-compete agreements applied to any employer operating in the District and any employee working in the District. The law prohibited employers from restricting employees from being simultaneously or subsequently employed by another employer. There were only a few exceptions. The ban on non-competes did not apply to medical specialists earning more than $250,000 annually, religious officials, unpaid volunteers, or babysitters. The District of Columbia and the U.S. government were also excluded from applicability. Finally, the bill did carve out an exception that allowed the use of non-compete agreements between a buyer and seller of a business.
The law would have greatly restricted business’s ability to...
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