Many employees in the District of Columbia will soon be protected by the new Non-Compete Ban going into effect in October 2022. The “Ban on Non-Compete Agreements Amendment Act of 2020” (“the 2020 Act”) was signed into law January 11, 2021, and codified March 16, 2021. As originally written, the Ban on Non-Compete Agreements was one of the broadest bans of non-compete agreements in the country. However, under intense pressure from D.C. employers to amend the Act to include additional exemptions from the definition of eligible employees, the Council of the District of Columbia pushed back the applicability date repeatedly and several councilmembers introduced amendments reducing protections for employees. This summer, on July 12, 2022, the Council passed the Non-Compete Clarification Amendment Act of 2022 (“the Amended Act”), scaling down protections for employees and constructing exemptions helpful to employers. The Amended Act is scheduled to go into effect October 1, 2022. The legislation is not retroactive, so it will not alter the enforcement of pre-existing non-compete agreements.
Generally, non-compete agreements prevent employees from using their expertise in their practice area at a comparable employer or competitor. Some non-competes prohibit comparable employment at any competitor, but many are limited in some way, for example in geographic or temporal scope. Non-competes limit employees’ abilities to move from one job to the next and thereby reduce their...
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https://www.natlawreview.com/article/new-non-compete-restrictions-to-take-eff...