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On January 11, 2021, Mayor Muriel Bowser signed into law the Ban on Non-Compete Agreements Amendment Act of 2020, passed by the Council of the District of Columbia in December 2020.
Update: The law will now be published in the District of Columbia Register and subject to a 30 legislative day congressional review period, after which it is expected to take effect. Once the bill becomes law, the District of Columbia will join California and Montana as one of the few jurisdictions with near-total bans on non-compete agreements. Employers with workers in the District of Columbia should immediately review and revise their existing employment agreements and policies as necessary to ensure compliance with this new law.
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On December 15, 2020, the Council of the District of Columbia passed a bill that, if enacted into law, would largely ban employers from requiring their D.C. employees to sign non-compete agreements.
If the bill is not vetoed by the Mayor or blocked by Congress, D.C. will join California as one of the few jurisdictions in the United States with near-total prohibitions on the use of non-compete agreements in employment.
Specifically, the bill states that no employer may require or request that an employee who performs work in D.C., or a prospective employee who an employer reasonably expects will perform work in D.C., sign an agreement that includes a non-compete provision. The bill also states that any non-compete entered into after the effective date of the bill is automatically void.