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One to Keep An Eye On: Non-Compete Conflict of Interest Clarification Amendment Act of 2021 (Washington D.C.)

 

As with many labor & employment 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.


On May 21st, Washington D.C. Council Member Elissa Silverman proposed the Non-Compete Conflict of Interest Clarification Amendment Act of 2021 (the “2021 Act”) that would amend the Ban on Non-Compete Agreements Amendment Act of 2020 (the “2020 Act”).  That 2020 Act bans all post employment and non compete agreements for D.C. employees as well as barring any policy or agreement that prohibits D.C. employees from simultaneously working for other employers.

While the 2020 Act has yet to go into effect, there has been confusion among many D.C. employers about the scope of this new law.  Never fear, Council Member Silverman’s proposal might do just that.  First, the 2021 Act would clarify that the 2020 Act does not extend to “bona fide conflict of interest” policies or provisions.  “Bona fide conflict of interest provisions” are defined as ones that “bar an employee from accepting money or a thing of value from a person during the employee’s employment with the employer because the employer reasonably believes the employee’s acceptance of money or a thing of value from the person will cause the employer to:  (A) Conduct its business in an unethical manner; or (B) Violate applicable local, state, or federal laws or rules.”  The 2021 Act would also clarify that confidentially agreements are not banned by the 2020 Act.  Finally, the 2021 Act would require D.C. employers to provide employee with notice of the 2020 Act.

At this point, it is unclear if the 2021 Act will pass (or be further amended.)  Stay tuned.


For additional information:  https://lims.dccouncil.us/Legislation/B24-0256

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