Washington, DC, Passes Sweeping Ban On Non‑Competes

Last month, District of Columbia Mayor Muriel Bowser signed the Ban on Non-Compete Agreements Amendment Act of 2020, which will have significant implications for all employers with employees working in DC. The new statute joins recent non-compete legislation enacted in neighboring states Maryland and Virginia (which prohibited non-competes with certain low-wage earners), and constitutes one of the broadest statutory bans of non-compete agreements in the United States. Significantly, the act:

• Prohibits the use and enforcement of non-compete agreements for all employees working in DC, with limited exceptions.
• Bans anti-moonlighting and other workplace policies which prohibit an employee from (1) performing work for or being employed by another person (even a direct competitor) or (2) operating their own business.