D.C.’s Controversial Non-Compete Law Delayed Until April 1, 2022
As we discussed in our January 2021 E-Update, the District of Columbia passed arguably one of the most sweeping non-compete bans in the country. The effective date of this law, however, has been delayed until April 1, 2022.
With a few limited exceptions, the Ban on Non-Compete Agreements Amendment Act of 2020 (“the Act”) would prohibit the use of non-competition agreements across all income levels both during and after employment. Notably, however, D.C. Council members, including the Act’s sponsor, have questioned the impact of this law, and are considering amendments, including adding an exception for “bona fide conflict of interest provisions” and clarifying that employees may be banned from using, as well as disclosing, the employer’s confidential, proprietary or sensitive information (e.g. client or customer lists, trade secrets). Another proposal would permit certain targeted non-competes. Whether any of these amendments will pass is not yet known.