Non-Compete Clauses in Washington, D.C.: Nearly Banned
The D.C. Non-Compete Ban
The District of Columbia has one of the strongest non-compete restrictions in the country. The Ban on Non-Compete Agreements Amendment Act of 2020, which took full effect on October 1, 2022, prohibits employers from requiring or requesting that most employees sign non-compete agreements.
Who Does the Ban Cover?
The law applies to nearly all workers in D.C., including:
- Full-time and part-time employees
- Independent contractors working primarily in D.C.
- Workers at any income level (unlike some state laws that exempt high earners)
Limited Exceptions
The ban does include narrow exceptions:
- Medical specialists earning over $250,000 annually
- Volunteers are not covered by the ban
- Sellers of a business may still agree to non-competes as part of a sale transaction
Outside these exceptions, any non-compete provision in a D.C. employment agreement is considered void and unenforceable.
Employer Obligations
Employers must provide written notice to employees about the ban. Failure to do so can result in penalties of $350 to $1,000 per violation. Employers who retaliate against employees for refusing to sign a non-compete face additional liability.
Red Flags to Watch For
- A non-compete clause in any standard employment contract
- "Garden leave" provisions that function as disguised non-competes
- Overly broad non-solicitation clauses that effectively prevent you from working for competitors
- Contracts governed by another state's law to circumvent the D.C. ban
When to Consult a Lawyer
Consider speaking with a D.C. employment attorney if your employer is requiring you to sign a non-compete, if you signed one before the ban took effect and are unsure of its current status, or if you believe your employer is retaliating against you for asserting your rights under the ban.
This article is for informational purposes only and does not constitute legal advice. Consult a licensed attorney for guidance specific to your situation.