Careers

Diversity

With 17 offices, from New York to Los Angeles and Seattle to Orlando, we live and work in communities all over the U.S., collaborating across locations, disciplines and even borders. Our experienced, highly ranked lawyers serve businesses wherever they are and wherever they want to go.

Offices

About Us

Pages

Professionals

Thought leadership: blogs, podcasts, videos, publications, events and news

Insights

Services

Pro Bono

Am Law 100 firm with practices in Business, Digital Assets and Data Management, Intellectual Property, Labor & Employment, Litigation and Tax.

Home | BakerHostetler

Ohio Clock

Hallway with a grandfather clock displayed

Congress Faces Pre-election Budget Vote to Avoid Government Shutdown

Senate Passes Kids Online Safety Measure But House Passage Unclear

Current State of U.S. Economic Sanctions Imposed in Response to Russia’s Invasion of Ukraine – August 29, 2024

Current State of U.S. Export Controls in Response to the Russian Federation’s Invasion of Ukraine – August 29, 2024

<img class="alignright wp-image-5280" src="https://employmentlawspotlight.bakerhostetlerblogs.com/wp-content/uploads/sites/18/2020/12/non-compete-GettyImages-1039104386-1200x630-72dpi.jpg" alt="" width="438" height="230" />

On Dec. 15, 2020, a unanimous District of Columbia City Council approved a broad ban on noncompete agreements and “moonlighting” policies that would be among the most restrictive in the nation. Since adoption of the Defend Trade Secrets Act in 2016, 11 states have enacted legislation regulating the use of noncompetes, including prohibiting them for lower-wage employees, which recently occurred both in nearby Maryland (in 2019) and Virginia (in 2020), but no state has chosen to join California in prohibiting the enforcement of employment-based noncompetes across the board.

Under the approved bill, following its enactment, any “noncompete provision contained in an agreement that was entered into on or after the applicability date … between an employee and an employer shall be void as a matter of law and unenforceable.” Additionally, the law prohibits employers from having a workplace policy that prohibits employees from being “employed by another person,” performing “work or providing services for pay for another person” or operating “the employee’s own business.” Thus, it would appear that the legislation might allow employees to work for their employer’s competitor even while employed by their employer.

The legislation would apply to all employees in the district, with a few narrow exceptions, including one for highly compensated medical specialists earning more than $250,000 per year.

In addition to the restrictions against noncompetes, the bill would impose upon employers the duty to notify their employees about the law, with civil penalties for noncompliance.

The bill is now before Mayor Muriel Bowser. If the mayor does not veto the legislation, it will next head to Congress, where it could still be disapproved. However, absent any action stopping the legislation, employers should be aware that there is a strong possibility that they might not be able to obtain valid noncompete agreements in the District of Columbia or enforce policies to stop employees from working for other employers sometime early next year. More to follow as the legislation advances.

DC City Council Passes Broad Noncompete Ban

Featured Insights

Related Services

Featured Insights