In 2019, Maryland enacted a law that essentially voided non-compete provisions for employees making $31,200 or less annually. In 2020, Virginia took it a step further with its ban and private right of action for employees making less than Virginia’s average weekly wage. Now, Washington D.C. has enacted what amounts to an almost total ban on non-compete provisions in employment agreements, regardless of income level or position within a company. Once Congress votes to approve the measure, the law will become effective in the District (on or about March 19, 2021).
What it does:
What it does not do:
How it is enforced
Employers with employees in D.C. who are concerned about competitive practices post-employment should consider immediately reviewing and/or implementing non-competes before the effective date (since the law operates to void only those non-competes entered into after the effective date). This is also a good time to review just how robust the company’s non-solicitation, NDAs, and confidentiality/trade secrets agreements are.
— If you have further questions or concerns or would like assistance evaluating your business’s potential exposure under this new law, please contact: