Washington D.C. – Non-Compete & Trade Secrets Law

August 8, 2022June 22, 2023 by Duane Morris

District of Columbia Walks Back Noncompetition Ban in Favor of Income-Based Threshold

In our Alerts published January 22, 2021, February 17, 2021, and March 17, 2022, we detailed the Washington, D.C., Ban on Non-Compete Agreements Amendment Act of 2020. Among other provisions, had it taken effect, the 2020 Act would have rendered void and unenforceable any agreement prohibiting an employee from working for a competitor following employment and while the employee is still employed by the employer. The ban on so-called in-term restrictive covenants―standard provisions that prevent an employee from simultaneously working for a competitor of his or her employer―would have been the first of its kind.

Read the full Alert on the Duane Morris LLP website.

March 17, 2022June 22, 2023 by Duane Morris

Washington, D.C., Again Postpones Its Ban on Noncompetes

In our Alerts published January 22 and February 17, 2021, we detailed the various provisions of the broad, new Washington, D.C., Ban on Non-Compete Agreements Amendment Act of 2020 (the Act), slated to take effect once the District of Columbia Council funded the law through the appropriations process. Among other provisions, the Act would render void and unenforceable any agreement prohibiting an employee from working for a competitor following employment and while the employee is still employed by the employer. The ban on so-called in-term restrictive covenants―standard provisions that prevent an employee from simultaneously working for a competitor of his or her employer―would be the first of its kind in the country.

Read the full Alert on the Duane Morris LLP website.

February 17, 2021June 22, 2023 by Duane Morris

Expect Delay of Washington, D.C., Ban on Noncompetes Until October 1, 2021

In our Alert published January 22, 2021, entitled “Washington, D.C. Employers Prepare for Broad Ban on Noncompetes and Related Workplace Policies,” we detailed the various provisions of the broad, new Ban on Non-Compete Agreements Amendment Act of 2020 and explained that the law would take effect after a 30-day congressional review period, approval and publication in the District of Columbia Register. It is important to clarify, however, that approval requires that the District of Columbia Council fund the law through the appropriations process. Therefore, the law will not actually go into effect until its inclusion in an approved budget and financial plan (the “effective date”).

Read the full Alert on the Duane Morris LLP website.

January 22, 2021June 22, 2023 by Duane Morris

Washington, D.C., Employers Brace for Noncompete Agreement Ban and Related Workplace Policies

On January 11, 2021, Washington, D.C., Mayor Muriel Bowser signed the Ban on Non-Compete Agreements Amendment Act of 2020 (the Act), which takes effect after a 30-day congressional review period, approval and publication in the District of Columbia Register. Although several nearby states, such as Maryland and Virginia, have followed the growing trend of recently enacted laws limiting the use of noncompete agreements, the Act differs in two significant respects: (1) it applies to employees at all income levels and (2) prohibits the use of noncompetes and related workplace policies during employment. As more fully discussed below, this means that employers need to take swift action to address noncompete, nonsolicitation and confidentiality agreements, as well as workplace policies aimed at preventing outside employment and conflicts of interest, as soon as possible.

Read the full Alert on the Duane Morris LLP website.