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The District of Columbia's ban on non-compete agreements is delayed again. As we previously reported, the DC Government enacted The Ban on Non-Compete Agreements Amendment Act (the Act) in January 2021, which creates one of the most comprehensive non-compete bans in the country.
As we previously reported, earlier this year the District of Columbia enacted The Ban on Non-Compete Agreements Amendment Act (the Act), which creates the broadest non-compete ban in the country.
A restrictive covenant is a clause in an employment contract or services agreement that works to prohibit an individual from (among other things) competing with his or her ex-employer for a certain period after he or she has left the business.
Regardless of income, a non-compete is now void and unenforceable under RCW 49.62 unless the employer gives the employee written notice of the terms of the non-compete before the employee accepts the offer of employment.
Sometimes referred to as non-involvement clauses, non-compete clauses are valid and enforceable as long as there are reasonable limitations as to time, trade, and place.
The only restrictive covenants that are enforceable post-employment are clauses prohibiting solicitation of customers or employees, disclosure of confidential information, and misrepresentation by the ex- employee as acting in a capacity other than that of a former employee (see Question 8).
By Janet A. In California, North Dakota, the District of Columbia, and Oklahoma, non-competes are either entirely or largely unenforceable as against public policy. Other states, including Maine, Maryland, New Hampshire, Rhode Island, and Washington, have banned non-compete agreements for low-wage workers.
This is usually 6 months, but can sometimes be 3 or even 12 months depending on your seniority.
As we discussed in our March 2021 update, the District of Columbia's Ban on Non-Compete Agreements Amendment Act of 2020 (the Act) was expected to become enforceable this fall with the passage of the District's Fiscal Year 2022 budget.
Typically, courts tend to enforce restrictions of between 6 and 12 months, depending upon the seniority of the employee concerned and their access to confidential information and clients. This is subject, of course, to the covenants being reasonable and necessary to protect a legitimate business interest.