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Washington D.C. Limits Enforceability of Non-Compete Agreements

On Behalf of | Nov 9, 2022 | Uncategorized

On October 1, 2022, Washington D.C’s amended Non-Compete Agreements Amendment Act (“Amended Act”) became effective.  The purpose of the law is to limit the enforceability of non-compete agreements and protect employees from overly broad or unnecessary non-competes. The Amended Act allows employers to require signed non-compete agreements for only “highly compensated employee,” which is defined by the Act as an employee who earns greater than or equal to $150,000 or, in the case of medical specialists, $250,000. Moreover, the Amended Act prohibits employers both from retaliating against employees who decline to sign the non-compete agreement or who raise concerns about the non-compete agreement.

For “highly compensated employees”, any non-compete agreement that was drafted after the effective date of the Amended Act must be compliant with the Amended Act.  Specifically, the Amended Act requires that all non-compete agreement must be in writing and address the following: the (1) scope of the restriction; (2) geographic restrictions of where the employee can work; and (3) from the date that the employee is no longer working for the employer, the agreement is void after 365 days for non-medical specialists and 730 days for medical specialists.

If you have questions or concerns about a non-compete agreement in Washington, D.C., GEL attorneys may be able to help you.