Ban on Noncompete Agreements Amendment Act of 2020

July 14, 2021

The DC Chamber and several employers testified on July 14, 2021 before the Committee on Labor & Workforce Development asking for reasonable changes and clarifications to the Ban on Noncompete Agreements Amendment Act of 2020. Publicly the Chamber shared that, “We would ask the Committee to carefully consider the competitive implications of the Act. This puts our employers in the unenviable position of being unable to protect themselves from potential poaching of their key employees by national competitors and especially nearby businesses in neighboring jurisdictions.”

The Issue:
Currently, the District is the only jurisdiction that has a complete ban on both simultaneous and subsequent employment. No other jurisdiction imposes an outright ban restricting an employer from having workplace policies that limit the outside employment of current employees even if that work poses a conflict. The business community supports proposed revisions offered by Councilmember Pinto. These limited changes to the law would allow employers clarity and flexibility to protect sensitive information; an employer’s investment and competitive advantage all of which would ensure low-wage workers are exempt and safeguarded.

Status:
A clarification bill is likely to move forward in the legislative process this fall and it is our hopes that it includes key revisions that the business community supports. The DC Chamber will continue to track its progress and push for those much needed changes.

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