D.C.’s Noncompete Ban Is Delayed Until October 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. In order to consider some amendments to address serious concerns from the business community, however, the effective date of this law was previously delayed until April 1, 2022 (as we reported in our August 2021 E-Update) and, as the amendments are still pending, now has been further delayed until October 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.