Good news for D.C. employers who were worried about the (very) broad D.C. proposed ban on non-competes! On July 12, 2022, the District of Columbia Council passed the Non-Compete Clarification Amendment Act of 2022 (B24-0256) ("Amended Act") to amend the 2020 blanket ban on non-compete clauses with a ban for only those whose total compensation per year is less than $150,000, or $250,000 for medical specialists. Compensation includes bonuses, commissions, overtime premiums, and vested stock.
The Amended Act, which will take effect on October 1, 2022, significantly scales back the Ban on Non-Compete Agreements Amendment Act which would have sought to impose the broadest non-compete prohibition in the country.
If you need a refresher on this non-compete law, please see our earlier Alerts here:
This Amended Act will apply to employees who (i) spend more than 50% of their time working in D.C., or (ii) if they spend "a substantial amount of" their "work time for the employer" in D.C. and do not spend more than 50% of their work time in another jurisdiction.
The Amended Act also restricts the duration of non-compete agreements for employees making over $150,000 to one (1) year and two (2) years for medical specialists making in excess of $250,000. Employees are required to provide a copy of the non-compete agreement at least fourteen (14) days before an individual "commences employment for the employer" or if the individual is already employed by the employer, "at least fourteen...
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