Mon, 12/21/2020
On December 17, the D.C. Council unanimously passed the Ban on Non-Compete Agreements Amendment Act of 2020 which, if it is not vetoed, will “make void and unenforceable non-compete” agreements entered after the law’s effective date. A non-compete agreement is a contract between an employee and their employer that limits the employee’s ability to work for a competitor. The D.C. legislation will prohibit employers from barring employees from working for competitors during the term of their employment and after their employment ends.
Under the District’s new legislation, non-compete agreements would only be permitted for casual baby-sitters and medical specialists (broadly, physicians who earn more than $250,000 annually). An employer who wants to implement a non-compete agreement for a medical specialist will have to comply with specific procedural requirements.
The District’s approach is stricter than many – if not all – other states that have placed restrictions on non-compete agreements, which have come under scrutiny in recent years for preventing low- and middle-income workers from switching jobs even though they likely do not have access to sensitive business information or customer relationships.
There are eight jurisdictions that have some prohibition on non-competes for low wage workers: Maine, Maryland, New Hampshire, Washington, Rhode Island, Illinois, Virginia, and Massachusetts. Moreover, Oklahoma, North Dakota and California have wide bans on non-compete agreements. The District joins the growing list of jurisdictions that aim to protect vulnerable low wage workers.
If you believe your employer has illegally required you to sign a non-compete agreement, contact MSE at info@mselaborlaw.com.
