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District of Columbia Non-Compete Clarification Amendment Act of 2022

The District of Columbia’s Non-Compete Clarification Amendment Act of 2022, which clarified the Ban on Non-compete Agreements Amendment Act of 2020, is effective as of October 1, 2022 (“Amendment”). Amendment prohibits employers who operate in DC from requesting or requiring that any employee, who spends 50% or more of his or her time working in DC, execute an agreement, or follow a company policy, containing any non-compete provisions. Amendment defines a non-compete provision as, an agreement which prohibits the employee from performing work or providing services for pay for another person or operating the employee's own business.

The restrictions on non-competes do not apply to highly compensated employees earning $150,000 or more in compensation annually, nor to medical specialists earning $250,000 or more in compensation annually. Employers may require such highly compensated employees to enter into a non-compete agreement for up to 365 days.

Any non-compete provision entered in violation of the Amendment after the effective date will be void and unenforceable. Agreements entered before the effective date shall not be affected and shall remain enforceable under prior regulations. Furthermore, Employers who violate the Amendment may be subject to administrative fines and penalties of up to $1,000 per incident, plus subject to the payment of monetary relief to effected employee of more than $3,000 per employee.

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