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One to Keep An Eye On: Ban on Non-Compete Agreements Amendment Act of 2019 (Washington, D.C.)


As with many employment and labor law related cases (and bills) being litigated around the country, there are always a few that stand out.  This is one to keep an eye on.


Yes, you read the date of this legislation correctly...although this bill was introduced in the D.C. Council last year, it is still under debate into the start of 2020.  The legislation would ban the use of non-compete agreements for certain workers in the District of Columbia based upon their wages.  As currently worded, B23-0494 - the Ban on Non-Compete Agreements Amendment Act of 2019, would bar the use of non-compete agreements for employees that earn equal to or less than 3x the minimum wage rate.  Currently, the hourly minimum wage rate in the District of Columbia is $14/hour.  As a result, if approved, this bill would apply to all employees that earn just under $88,000.00/year.  (Of course, that figure would rise to over $93,000.00/year once the minimum wage rate increases to $15/hour this year.)  As well, B23-0494 would prohibit non-compete agreements that restrict an employee from working for another employer during their employment if their pay is equal to or under the 3x minimum wage threshold.

Of note, violations of this law would incur steep penalties for employers:  $500 - $1000 per violation (with the Mayor also being able to impose penalties of $500); not less than $1,500 if an an illegal non-compete is enforced against an employee; and penalties of $1,000 - $2,000 per violation if an employee is retaliated against.

Although there is no guarantee that the Ban on Non-Compete Agreements Amendment Act of 2019 will secure passage and be signed into law, if approved, this legislation would impose some of the strictest penalties against employers.


For a copy of B23-0494:  https://aboutblaw.com/Ns7

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