2023 District of Columbia Code › Title 32 - Labor › Chapter 5B - Ban on Non-compete Agreements › § 32–581.03. Limitations on non-compete provisions for highly compensated employees

§ 32–581.03. Limitations on non-compete provisions for highly compensated employees.
(a) For a non-compete agreement between an employer and a highly compensated employee executed on or after October 1, 2022, to be valid and enforceable:
(1) The agreement must specify:
(A) The functional scope of the competitive restriction, including what services, roles, industry, or competing entities the employee is restricted from performing work in or on behalf of;
(B) The geographical limitations of the work restriction; and
(C)(i) If the employee is not a medical specialist, a term of non-competition that does not exceed 365 calendar days from the date the employee separates from employment with the employer; or
(ii) If the employee is a medical specialist, a term of non-competition that does not exceed 730 calendar days from the date the employee separates from employment with the employer; and
(2) The employer shall provide the non-compete provision to the employee in writing:
(A) At least 14 days before the individual commences employment for the employer; or
(B) If the employer already employs the highly compensated employee, at least 14 days before the employee must execute the agreement.
(b)(1) No employer may retaliate or threaten to retaliate against a highly compensated employee who has executed a non-compete agreement with the employer for asking for a copy of a proposed non-compete provision or non-compete agreement or for a copy of a non-compete provision or non-compete agreement that the employee executed;
(2) No employer may retaliate or threaten to retaliate against a highly compensated employee for:
(A) Asking the employer for the information required to be provided to the employee pursuant to § 32-581.03a; or
(B) Asking about or objecting to a proposed non-compete provision or agreement because the employee reasonably believes that the provision or agreement does not conform to the requirements of subsection (a)(1) of this section or reasonably believes that the employer has failed to comply with the requirements of subsection (a)(2) of this section to:
(i) An employer, including the highly compensated employee's employer;
(ii) A coworker;
(iii) The highly compensated employee's lawyer or agent; or
(iv) A governmental entity.
(Mar. 16, 2021, D.C. Law 23-209, § 103, 68 DCR 000782; Sept. 21, 2022, D.C. Law 24-175, § 2(a), 69 DCR 009910.)
Applicability
Section 2 of D.C. Law 24-132 amended section 302 of D.C. Law 23-209 to provided that the creation of of this section shall apply as of October 1, 2022.
Section 2 of D.C. Act 24-455 amended section 302 of D.C. Law 23-209 to provided that the creation of this section shall apply as of October 1, 2022.
Section 2 of D.C. Act 24-350 amended section 302 of D.C. Law 23-209 to provided that the creation of this section shall apply as of October 1, 2022.
Section 7202 of D.C. Law 24-45 amended section 302 of D.C. Law 23-209 to provided that the creation of this section shall apply as of April 1, 2022.
Section 7202 of D.C. Act 24-159 amended section 302 of D.C. Law 23-209 to provided that the creation of this section shall apply as of April 1, 2022.
Applicability of D.C. Law 23-209: § 302 of D.C. Law 23-209 provided that the creation of this section by § 103 of D.C. Law 23-209 is subject to the inclusion of the law’s fiscal effect in an approved budget and financial plan. Therefore that amendment has not been implemented.
Emergency Legislation
For temporary (90 days) amendment of this section, see § 103 of Non-Compete Clarification Emergency Amendment Act of 2022 (D.C. Act 24-552, Aug. 15, 2022, 0 DCR 0).