District of Columbia Sample Corporate Consulting and Noncompetition Agreement
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FAQ
Originally poised to be one of the broadest non-compete bans in the country, Washington, D.C.'s scaled-back non-compete law became enforceable on October 1, 2022.
This might look something like this: ?During the term of this Agreement and for a one (1) year term thereafter, (Contractor Name) shall not solicit or encourage any employee, vendor, independent contractor, or client of (Company Name) to leave or terminate their relationship with (Company Name) for any reason.?
Section 32-581.02 - Non-compete rights and restrictions (a) (1) Beginning October 1, 2022, no employer may require or request that a covered employee sign an agreement or comply with a workplace policy that includes a non-compete provision.
Currently, nine states ? California, Colorado, Illinois, Maine, Nevada, Oregon, Virginia, Washington, and Wisconsin ? and Washington, D.C., impose such penalties. California: In California, non-compete agreements are prohibited by law (Cal.
(c) [Employee name] agrees not to set up in business as a direct competitor of [company name] within a radius of [number] miles of [company name and location] for a period of [number and measure of time (e.g., ?four months? or ?10 years?)] following the expiration or termination of this agreement.
The Act is not retroactive. Employers do not need to amend any current non-compete agreements with covered employees. However, employers should consult with legal counsel before amending an existing agreement with a non-compete, to evaluate whether the amendment could subject the agreement to the Act.
As of October 1, 2022, a new District law makes it illegal for employers to impose noncompete clauses and policies (noncompetes) on many District employees.
The Employee specifically agrees that for a period of _____ [months/years] after the Employee is no longer employed by the Company, the Employee will not engage, directly or indirectly, either as proprietor, stockholder, partner, officer, employee or otherwise, in the same or similar activities as were performed for ...
