Ban on Noncompetes
On January 11, 2021, District of Columbia Mayor Muriel Bowser signed the D.C. Ban on Noncompete Agreements Amendment Act of 2020 (B23-0494) prohibiting D.C. employers, including prospective employers, from:
- Requiring or requesting that an employee sign an agreement with a non-compete provision.
- Having a workplace policy that prohibits an employee from being employed by another, performing work or providing paid services for another, or operating their own business.
The act also prohibits employers from retaliating against an employee because they refuse agree to a non-compete provision, fail to comply with a non-compete provision or policy, or ask or complain about a non-compete provision or policy that they reasonably believe to be illegal to an employer, including their employer, a coworker, lawyer, or governmental entity.
Employers must also provide employees the following written notice, “No employer operating in the District of Columbia may request or require any employee working in the District of Columbia to agree to a non-compete policy or agreement, in accordance with the Ban on Noncompete Agreements Amendment Act of 2020.” This notice must be provided to employees no later than:
- 90 calendar days after act takes effect;
- Seven calendar days after hire; and
- 14 calendar days after the employer receives a written request for it.
The act has additional protections for medical specialists along with enforcement provisions and is effective April 1, 2022 (per DC B24-0373).
Important: On August 23, 2021, D.C. Mayor Bowser signed DC B24-0373, postponing the act from taking effect. The act is now effective April 1, 2022.