DC Finally Prunes its Ban on Non-Competes

When initially enacted in January 2021, the District of Columbia’s Ban on Non-Compete Agreements Amendment Act was one of the broadest non-compete prohibitions in the country.  Its effective date, however, was delayed on several occasions amid widespread criticism of its comprehensive scope.  For more information about the original act and its subsequent delay, please see our previous posts on the matter here and here.  The DC Council ultimately passed a scaled back version some 18 months later.

Effective October 1, 2022 (unless Congress unexpectedly steps in under the Home Rule Act), the Non-Compete Clarification Amendment Act of 2022 (the “Amended Act”) limits the scope of the initial ban by narrowing of (a) the definition of a “non-compete provision” and (b) applicability to certain highly compensated employees (“HCEs”).