2023 District of Columbia Code › Title 32 - Labor › Chapter 5B - Ban on Non-compete Agreements › § 32–581.04. Relief and penalties

§ 32–581.04. Relief and penalties.
(a)(1) The Mayor and Attorney General shall administer and enforce this chapter consistent with their respective powers and rights under § 32-1306(a), (a-1), (b), and (c).
(2)(A) Any records an employer maintains pursuant to the requirements of regulations issued to implement this chapter shall be open and made available for inspection or transcription by the Mayor, the Mayor's authorized representative, or the Office of the Attorney General upon demand at any reasonable time. An employer shall furnish to the Mayor, the Mayor's authorized representative, or the Office of the Attorney General on demand a sworn statement of records and information on forms prescribed or approved by the Mayor or Attorney General.
(B) No employer may be found to be in violation of subparagraph (A) of this paragraph unless the employer had an opportunity to challenge the Mayor or Attorney General's demand before a judge, including an administrative law judge.
(b)(1) The Mayor may assess an administrative penalty of no less than $350 and no more than $1,000 for each violation of this chapter; except, that the penalty for each violation of §§ 32-581.02(b) and 32-581.03(b) assessed against an employer shall be for not less than $1,000.
(2) The Mayor may not collect an administrative penalty under this subsection unless the Mayor has provided the employer alleged to have violated this chapter notification of the violation, notification of the amount of the administrative penalty to be imposed, and an opportunity to request a formal hearing held pursuant to Chapter 5 of Title 2 and § 32-1308.01(e).
(c)(1) A person aggrieved by a violation of this chapter may pursue relief by filing:
(A) An administrative complaint with the Mayor setting forth facts minimally sufficient to allege a violation of this chapter; or
(B) A civil action in a court of competent jurisdiction. In such action, the plaintiff shall carry the burden of proof by a preponderance of evidence.
(2)(A)(i) The procedures set forth in § 32-1308.01(c) through (m) of An Act shall govern the conciliation, resolution, and enforcement of an administrative complaint filed pursuant to paragraph (1)(A) of this subsection; except, that § 32-1308.01(e)(4) and (5), shall not apply.
(ii) Appeals of any administrative order issued under this chapter shall be made to the District of Columbia Court of Appeals.
(B) Section 32-1308 shall apply to any civil action filed pursuant to paragraph (1)(B) of this subsection.
(d) Upon investigation by the Mayor pursuant to subsection (a) of this section or in an action to enforce this chapter pursuant to subsection (c) of this section, in addition to administrative penalties authorized pursuant to this section, an employer found to have violated § 32-581.02, § 32-581.03, or § 32-581.03a shall be liable for relief payable to an employee as follows:
(1)(A) An employer that violates § 32-581.02(a)(1) shall be liable for each violation to each employee subjected to the violation for monetary relief in an amount not less than $500 and not greater than $1,000.
(B) For any subsequent violation of § 32-581.02(a)(1), an employer that has been found liable pursuant to subparagraph (A) of this paragraph shall be liable for relief in an amount not less than $3,000 to each affected employee.
(2)(A) An employer that attempts to enforce a non-compete provision that is unenforceable or void as provided in §§ 32-581.02(a)(2) and 32-581.03(a) shall be liable to each employee against whom the employer attempted to enforce the invalid non-compete provision for relief in an amount not less than $1,500.
(B) For any subsequent violation of § 32-581.02(a)(2) or § 32-581.03(a), an employer that has been found liable pursuant to subparagraph (A) of this paragraph shall be liable for relief in an amount not less than $3,000 to each affected employee.
(3)(A) An employer that retaliates against an employee in violation of § 32-581.02(b) or § 32-581.03(b) shall be liable for each instance of retaliation to each employee subject to the retaliation in an amount not less than $1,000 and not more than $2,500.
(B) For any subsequent violation of § 32-581.02(b) or § 32-581.03(b), an employer that has been found liable pursuant to subparagraph (A) of this paragraph shall be liable for relief in an amount not less than $3,000 to each affected employee.
(4) An employer that violates § 32-581.03a shall be liable for each violation to each employee subjected to the violation for monetary relief in an amount of $250.
(Mar. 16, 2021, D.C. Law 23-209, § 104, 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 § 104 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 § 104 of Non-Compete Clarification Emergency Amendment Act of 2022 (D.C. Act 24-552, Aug. 15, 2022, 0 DCR 0).