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#EmploymentLaw thread:
On January 11, 2021 DC Mayor Muriel Bowser signed into law the Ban on Non-Compete Agreements Amendment Act of 2020, passed by the DC Council in December 2020.
https://lims.dccouncil.us/downloads/LIMS/43373/Signed_Act/B23-0494-Signed_Act.pdf
1/12
On January 11, 2021 DC Mayor Muriel Bowser signed into law the Ban on Non-Compete Agreements Amendment Act of 2020, passed by the DC Council in December 2020.
https://lims.dccouncil.us/downloads/LIMS/43373/Signed_Act/B23-0494-Signed_Act.pdf
1/12
The Act is prospective looking and states that no employer may require or request that an employee who performs or will perform work in DC to sign an agreement that includes a non-compete provision.
2/12
2/12
There are a few exception: (1) Physicians that earn more than $250,000 a year; (2) volunteers; (3) lay-people involved in religious functions; and (4) "casual babysitter[s]" employed in a residence.
3/12
3/12
What's interesting about the Act is that it defines non-compete not only in the traditional framework (meaning restriction on future competitive employment) but also bans restricting employees from ANY other employment during their tenure (even if not a competitor)
4/12
4/12
The Act provides that employees may not be prohibited from running their own business at the same time, i.e., get after that side hustle! (Interesting to see how this interacts with fiduciary duty obligations for senior employees).
5/12
5/12
The Act does not include a ban on using the employer's trade secrets, confidential information, or customer/client lists in any other job, so traditional non-disclosure agreements are still fair game.
6/12
6/12
It is also silent on non-solicit agreements. A committee report prepared by the DC Council discussing the bill noted that non-solicitation agreements may be used as an alternative to non-compete agreements, which is very interesting and contrary to places like CA.
7/12
7/12
The Act does not ban non-compete agreements entered into in conjunction with the sale of a business, which are generally treated more leniently than non-compete agreements entered into in the course of an employment relationship.
8/12
8/12
Employers with employees currently working in DC must provide notice language within 90 days (and within 7 days for all new future employees). The notice language is:
9/12
9/12
"No employer operating in the District of Columbia may request or require any employee working in the District of Columbia to agree to a non-compete policy or agreement, in accordance with the Ban on Non-Compete Agreements Amendment Act of 2020.”
10/12
10/12
One question I have after reviewing the Act is on the definition of "employee." For example, does traveling to DC to perform lobbying services make someone an "employee" for a company that otherwise has no connection to DC? The def of both employee and employer is BROAD.
11/12
11/12
Relatedly, does a choice of law provision answer my question in #11? It seems that the Act would apply even with a choice of law of another jx (meaning if an employee works in DC at ALL the non-compete is banned) but unlike CA, the Act does not specifically address it.
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