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New Laws for 2021: Ban on Non-Compete Agreements Amendment Act of 2020 (Washington, D.C.)

 

Earlier this month, Washington, D.C. Mayor Muriel Bowser signed the Ban on Non-Compete Agreements Amendment Act of 2020 (“Act”) into law which will put into place one of the most expansive bans on non compete agreements anywhere in the country.

In principal part, the Act prohibits non compete agreements in D.C. subject only to a few narrow exceptions and does not apply to prior non compete agreements entered into before the Act takes effect.  Notwithstanding those exceptions, the Act is far reaching.  

The Act is somewhat unique in that it not only ban employers from prohibiting employees from working for competitors after employment ends...but also simultaneous employment.  In essence, employers are no longer allowed to prohibit their employees from taking another job with a competitor or moonlighting.

Mayor Bowser’s signing of the legislation comes on the heels of the D.C. Council approving the measure back in December.  I do want to point out that while Mayor Bowser did sign the Act, it is not yet in effect. The Act will not go into effect until the expiration of the 30 day Congressional review period and the publication of the Act in the District of Columbia Register.  I would be surprised if Congress jumped in here.  As a result, within the next few months (likely by the start of spring), I would expect to see the Act go into effect.  D.C. employers, use this time to prepare and ensure compliance.


For additional information:  https://www.jdsupra.com/legalnews/d-c-employers-are-potentially-weeks-6928617/

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