Key Points:

• Originally poised to be one of the broadest non-compete bans in the country, Washington, D.C.'s scaled-back non-compete law became enforceable on October 1, 2022.
• The new law prohibits non-competition provisions for covered employees but allows non-competes with highly compensated employees that meet certain drafting and procedural requirements.
• The new law does not prohibit non-competition provisions with the seller of a business, otherwise lawful confidentiality provisions or certain anti-moonlighting provisions.
• All D.C. employers with permissible workplace policies restricting employees' use or disclosure of confidential information or outside employment activities must provide copies of the policies to affected D.C. employees by October 31, 2022 and comply with additional notice requirements.
• D.C. employers who violate the law will be subject to penalties.

After two years of delays and amendments, Washington, D.C.'s new non-compete law finally became legally effective on October 1, 2022. As summarized in our prior alert, Washington D.C.'s original Ban on Non-Compete Agreements Amendment Act of 2020 (the "2020 Legislation") would have banned non-competition agreements and anti-moonlighting policies for virtually all D.C. employees. Backlash from the D.C. business community led the D.C. Council to delay implementation of the 2020 Legislation and pass a scaled-back version in the form of the Non-Compete Clarification Amendment Act of 2022 ("Amended Act").

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