For more than two years now, DC has been in the process of rolling out one of the Nation’s strictest non-compete laws.

After significant postponements and amendments, the law, in its latest amended form, went into effect on October 1, 2022.

So what do DC employers need to know going forward?

Immediate Action Required

Bottom Line: – Employers that have agreements or policies (including handbook provisions) containing confidentiality or moonlighting/outside employment provisions must provide copies of these any covered DC employees as soon as possible.

As noted further below, under the new law, employers are still permitted to have policies and agreements that:

• Prohibit employees from “disclosing, using, selling, or accessing the employer’s confidential employer information or proprietary employer information” (i.e. confidentiality or non-disclosure provisions),

OR

• That prohibit employees from performing work for another person or entity during the period of their employment (holding a second job or “moonlight”). This type of provision is permitted only if there is a reasonable belief that the outside work will result in disclosure of the employer’s confidential information, conflict with industry conflict of interest rules, or impair the employer’s ability to comply with any laws or contracts.

While the aforementioned types of restrictions are not considered “non-compete provisions” for the purposes of DC’s new law – the law does require that employers provide...

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