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As we reported here last month, on Dec. 15, 2020, a unanimous District of Columbia City Council approved a broad ban on noncompete agreements and “moonlighting” policies that would be among the most restrictive in the nation. On Jan. 11, 2021, Mayor Muriel Bowser signed and approved the Ban on Non-Compete Agreements Amendment Act of 2020. It now will be referred to Congress, where the legislature can disapprove the law within 30 days of the referral, although this is not expected.
Given the strong likelihood that the law will soon be in effect (likely sometime in February), employers in the District should begin preparing for some of the law’s requirements and ensure that any internal policies regarding noncompete agreements are updated to reflect the changing legal landscape. All employers should be cognizant of these requirements,
Friday, January 8, 2021
The District of Columbia City Council unanimously passed a bill titled “
The Ban on Non-Compete Agreements Amendment Act of 2020” on December 15, 2020. As its title suggests, upon taking effect and becoming applicable, the bill would broadly prohibit D.C. employers from requiring or requesting that D.C. employees agree to non-competition provisions and
may impact certain commonly used non-solicitation restrictions and policies.
(There is a narrow exception for “medical specialists,” which the bill defines as licensed physicians who have completed their medical residencies and make at least $250,000 annually.)
What Is On The Chopping Block?
The bill can be read to prohibit a broader set of restrictive covenants than those that employers may think of as being classic non-competition agreements. The bill states generally that employers may not require or request that their employees refrain from “(1) [b]eing employed by another pers
After President Trump claimed he directed the National Guard for immediate deployment after the Capitol Building raid, several reports point to Vice President Pence as the lead White House
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On Dec. 15, 2020, a unanimous District of Columbia City Council approved a broad ban on noncompete agreements and “moonlighting” policies that would be among the most restrictive in the nation. Since adoption of the Defend Trade Secrets Act in 2016, 11 states have enacted legislation regulating the use of noncompetes, including prohibiting them for lower-wage employees, which recently occurred both in nearby Maryland (in 2019) and Virginia (in 2020), but no state has chosen to join California in prohibiting the enforcement of employment-based noncompetes across the board.
Under the approved bill, following its enactment, any “non-compete provision contained in an agreement that was entered into on or after the applicability date … between an employee and an employer shall be void as a matter of law and unenforceable.” Additionally, the law prohibits employers from having a workplace policy that prohibits employe