UPDATE – On July 27, 2022, Mayor Bowser signed the Non-Compete Clarification Amendment Act of 2022. The approved Act must now be sent to Congress for a period of 30 days before becoming effective as law.
Washington, D.C. employers will not need to scrap all their non-compete agreements after all. On July 12, 2022, the D.C. Council (the “Council”) passed the Non-Compete Clarification Amendment Act of 2022 (B24-0256) (the “Amendment”), which among other things, tempers the District’s near-universal ban on non-compete provisions to permit restrictions for highly compensated employees. For further analysis on the original D.C. Ban on Non-Compete Act, please see our previous articles here and here.
The Council delayed the initial ban several times in response to feedback from employer groups. However, barring an unlikely veto or Congressional action during the mandatory review period, the amended ban will take effect as of October 1, 2022. We detail the key revisions to the ban below.
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