We’ve written previously about Washington, DC’s non-compete bill scheduled to take effect on October 1, 2022. While DC Council has pulled back from enactment before to make last-minute revisions to the legislation—most notably in 2021 after the initially-passed bill would have barred non-competes entirely—there appear to be no such changes this time. The currently-enacted bill stands to take effect this Saturday, October 1. Any employer with workers who live in Washington, DC, or who spend more than 50% of their time working in Washington, DC regardless of where they live, should take steps now to make sure their agreements are in alignment with the new law going forward, including the prohibition on non-compete provisions for employees making less than $150,000 annually and the 1-year limit on such restrictions ($250,000 and 2 years for “medical specialists”).
Employers should also keep in mind that the new DC law applies not only to written agreements, but to “workplace policies” as well, including unwritten policies. Toward that end, even those employers who do not have restrictive covenants in place may consider implementing a written note to employees stating that there is no workplace policy, written or otherwise, imposing such restrictions.