DC Non-Compete Ban Further Delayed Until October 1, 2022
As ArentFox Schiff previously outlined, the Council of the District of Columbia initially passed the Act on December 15, 2020. If implemented, the Act would largely ban employers from requiring their DC employees to sign non-compete agreements.
Other key provisions of the Act include:
Employers must provide their employees with a written notice regarding the ban on non-compete agreements.
Employers may not retaliate against an employee for refusing to sign a non-compete, asking or complaining about the existence, applicability, or validity of a non-compete provision, or requesting the employer provide the written notice language required by the Act.
A carve-out for agreements restricting employees from disclosing employer confidential information and for non-compete agreements entered into in conjunction with the sale of a business.
The delay provides the Council with additional time to consider amendments to the Act. Councilmember Silverman has proposed an amendment regarding the Act’s conflict of interest and confidentiality agreement provisions. The amendment, which ArentFox Schiff previously discussed, clarifies that employers can prohibit employees from working for competitors during their employment if doing so would create a “bona fide conflict of interest.”
Employers should continue reviewing and revising their existing employment agreements and policies. ArentFox Schiff will continue to monitor the DC Council’s actions and provide updates on any amendments to the Act.