Washington, D.C. Rolls Back Proposed Ban On Non-Compete Agreements

The Bottom Line

• Washington, D.C.'s amended law banning non-compete agreements contains an exception for highly compensated employees and no longer outright bans anti-moonlighting provisions in all instances.
• Employers should be mindful of the total annual compensation awarded to employees in determining whether an employee is a highly compensated employee.
• Employers should review their existing restrictive covenant agreements and employee handbooks for Washington, D.C. employees.

In the wake of heavy opposition to Washington, D.C.'s Ban on Non-Compete Agreements Amendment Act (the Act), a newly amended Act will now allow non-compete employment agreements and moonlighting restrictions in certain circumstances. The Non-Compete Clarification Amendment Act of 2022 (the Amended Act) takes effect on October 1, 2022.