What does it mean?
- Employers should determine whether and what kind of employees are protected by the Ban on Non-Compete Agreements and its Amendement("Ban").
- Employers should revisit their written policies and onboarding documents to comply with the Ban.
- Employers should not retaliate (take or threaten any adverse action, reduction of work hours, suspension, termination, or the like) employees for refusing to sign or comply with non-competes.
- Employers should follow the disclosure and notice requirements to make certain non-competes enforceable.
Who does it apply to?
- all private employers operating in D.C.
- with regards to all employees or prospective employees who perform the majority of work in D.C. (there is a criterion for determining whether employees are covered by the Ban or not).
Who does it NOT apply to?
- certain types of medical specialists (there is a criterion for medical specialists)
- highly compensated employees (however, the non-compete for a highly compensated employee must contain certain provisions and comply with notice requirements) who receive compensation of $150,000 or $250,000 for medical specialists (there are criteria on what to include in the compensation).
- volunteers in educational, charitable, religious, or nonprofit organizations
- religious ministers
- casual babysitters
- partners in a partnership
Does the ban extend to non-disclosure (confidentiality) agreements ("NDA")?
- No. The Ban on Non-Compete Agreements Sec. 101(5)(A) specifically allows NDAs. And employers should take advantage of it and review their NDAs.
Can a buyer of a business require a seller not to compete?
- Yes. The Ban also excludes sales of business from the ban. See Sec. 101(5)(B). So, a non-compete in the sale of a business setting is allowed.
- $350 - $1,000 per violation as an administrative penalty (imposed by the Mayor)
- $500 - $1,000 monetary relief to employee for each violation (either by administrative action or in a civil lawsuit)
- $1,500 or more in damages to the employee for attempts to enforce an unenforceable non-compete
- $3,000 or more in additional penalties for subsequent violations.
- $1,000 - $2,500 for retaliation to each employee for each vilation.