Washington D.C. Non-Compete Agreement | Laws

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Updated April 28, 2022

A Washington D.C. non-compete agreement prohibits an individual who enters into a relationship with a business entity from engaging in a similar business, thus enabling unfair competition. Beginning March 16, 2021, a blanket ban on all employment non-compete agreements (except for some practices) 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.

Source: D.C. Law 23-209

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 (2001)).

Maximum Terms

For the sale of a business, a term of a maximum of 2 years (Deutsch v. Barsky (2002)).

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