The District of Columbia prompted widespread outcry from the business community when it enacted one of the broadest bans on non-compete agreements in the country in early 2021. At least in part spurred by that outcry, this past summer the D.C. Council passed the “Non-Compete Clarification Amendment Act of 2022.” Certain of the restrictions imposed by the original “Ban on Non-Compete Agreements Amendment Act of 2020” had been delayed by DC emergency action, but the new Amendment Act passed this summer is enforceable on October 1, 2022, so it is now time for employers to be certain to comply. Fortunately, the Amendment Act eliminates the complete ban on non-competes and paves the way for continued use of non-competes with highly compensated employees. Notably, however, the new law continues to go beyond regulating non-competes, and includes notice and other requirements with which employers must comply.
By way of history, in January 2021, the Government of the District of Columbia approved the original non-compete ban. That law prohibited the use and enforcement of all non-compete agreements, except for certain highly paid physicians, and even banned employers from having anti-moonlighting policies, which prohibit employees from holding outside employment. The D.C. business community voiced its serious concerns.
The D.C. Council took notice, and on July 27, 2022, Mayor Bowser signed the Non-Compete Clarification Amendment Act of 2022. The law had previously passed the...
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