On January 11, 2021, District of Columbia Mayor Muriel Bowser
signed into law the Ban on Non-Compete Agreements Amendment Act of
2020 (the "Act") Under the Act, the District of
Columbia will implement one of the most far-reaching prohibitions
on non-compete agreements in the country. Previously, on December
17, 2020, the District of Columbia Council unanimously passed the
Act, which will apply to nearly all employers and employees in the
District of Columbia, regardless of income level.
A non-compete agreement is a contract between an employee and
their employer that limits the employee's ability to work for a
competitor. These agreements have come under criticism,
particularly when issued to workers earning lower wages or lacking
specialized skills since they can limit a worker's upward
mobility. Under the Act, non-compete agreements entered into on or
after the Act's applicability date will be deemed void, with
limited exceptions.
