Washington D.C. Non-Compete Agreement

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A Washington D.C. non-compete agreement prohibits an individual from engaging in a similar business. Beginning March 16, 2021, a blanket ban on all employment non-compete agreements went into effect (D.C. Law 23-209). Although, this law does not restrict the use of a non-compete in the sale of a business.

Legally Enforceable in Washington D.C.?

No, a non-compete for employment purposes has a blanket ban except for babysitters, appointed members in religious organizations, volunteers for charitable organizations, and medical specialists earning more than $250,000 per year.

“Non-compete provision” means a provision of a written agreement between an employer and an employee that prohibits 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.

Non-Disclosure (NDA) & Non-Solicitation

A Washington D.C. employer may include non-solicitation and non-disclosure clauses in their employment agreements (Furash & Co., Inc. v. McClave, 130 F. Supp. 2d 48 (2001)).

Maximum Term

For the sale of a business, a term of a maximum of two (2) years (Deutsch v. Barsky, 795 A.2d 669 (D.C. 2002)).

After a misappropriation is found, an employer has three (3) years to make claims against an employee (D.C. Code § 36-406).

Laws (statutes)

LawsD.C. Law 23-209 (Ban on Non-Compete Agreements Amendment Act of 2020)