Washington, D.C., Mayor Muriel Bowser signed the Ban on Non-Compete Agreements Amendment Act of 2020 into law on Jan 11. Unless Congress acts, it will become law after 30 days and will be the most restrictive law governing non-compete agreements in the U.S.
By way of reference, California, Colorado, Illinois, Maryland, Massachusetts, Virginia, and Washington have restrictions on non-compete agreements between employees and private employers. This law is more broad than those states’ laws. The DC law is a blanket prohibition on non-compete agreements–both restrictions on simultaneous employment and post-termination employment. Non-compete agreements already in place on the date of enactment will remain enforceable. In addition, non-disclosure and confidentiality agreements will remain legal.
The new DC law permits private lawsuits and administrative complaints and provides for statutory damages and penalties, as well as back pay, liquidated damages, attorney fees, and costs.