September 28, 2021

Volume XI, Number 271

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September 27, 2021

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D.C. Budget Bill Includes April 1, 2022 Applicability Date for Non-Compete Ban

The District of Columbia passed one of the nation’s most stringent regulations on covenants not to compete earlier this year. Except in very limited circumstances, the law states employers may not require or request employees sign an agreement that includes a non-compete provision, and employers cannot have a workplace policy that prohibits an employee from “(1) [b]eing employed by another person; (2) [p]erforming work or providing services for pay for another person; or (3) [o]perating the[ir] own business.”

As we noted at the time, although the law was passed and signed by Mayor Muriel Bowser, its restrictions would not become “applicable” until the fiscal effects of the law were included in an approved budget and financial plan.

On July 20, 2021, the D.C. Council had a first reading on the Fiscal Year 2022 Budget Support Act of 2021. Buried in this wall of text is a provision that would amend Section 302 of the non-compete act to include an “applicability date” of April 1, 2022.

So, April 1, 2022 is the date we are eyeing for the D.C. non-compete ban to “apply.” Of course, things could change, but this is as strong an indicator as we have seen. We will continue to monitor these developments and provide an update once the “applicability date” for the D.C. non-compete ban is confirmed.

In the meantime, employers should act now to ensure they do not run afoul of the D.C. non-compete ban once it does become applicable.

Jackson Lewis P.C. © 2021National Law Review, Volume XI, Number 207
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About this Author

Joseph E Schuler, Real Estate Trust, Trade Secrets Action, Jackson Lewis Law Firm
Principal

Joseph E. Schuler is a Principal in the Washington, D.C. Region office of Jackson Lewis P.C. He has litigated claims for breach of non-competition agreements, theft of trade secrets, and/or breach of the duty of loyalty in Maryland, Virginia, and the District of Columbia.

Mr. Schuler recently represented a publicly-traded real estate trust in a breach of trade secrets action against a former employee and start-up competitor backed by a national real-estate firm, resulting in a settlement that provided the client with a mid-six figure recovery and a non-compete...

703-483-8332
Jonathan L. Crook Employment Litigation Attorney Jackson Lewis Raleigh, NC
Associate

Jonathan L. Crook is an Associate in the Raleigh, North Carolina, office of Jackson Lewis P.C. He represents businesses in matters relating to unfair competition, restrictive covenants, trade secrets, and various employment issues.

Mr. Crook has substantial experience litigating in state and federal courts at the trial and appellate levels, as well as advising his clients on day-to-day compliance and best practices. Before joining Jackson Lewis, Mr. Crook practiced employment law and litigation in a regional mid-size law firm in Raleigh. Mr. Crook began his...

919-760-6487
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