Washington, D.C. Bans Non-Compete Agreements

Washington, D.C. passed the Ban on Non-Compete Agreements Amendment Act (the Act) on March 16, 2021, which broadly prohibits non-compete agreements and restrictions on moonlighting. Non-compete and anti-moonlighting agreements entered into with D.C. employees after this law takes effect will be void and unenforceable. This makes Washington, D.C. the most recent jurisdiction to ban non-compete agreements.

The Act's Prohibitions and Requirements

The Act's ban is threefold:

• First, it prohibits employers from requiring or even requesting that an employee sign a non-compete agreement, which is defined as a written agreement prohibiting "the employee from being simultaneously or subsequently employed by another person, performing work or providing services for pay for another person, or operating the employee's own business."