Washington, D.C.’s new noncompete law will take effect on October 1, 2022. See what you need to know.
D.C.’s upcoming noncompete law says that it will apply as of October 1, 2022. But it is not scheduled to become “effective” until November 10, 2022. Where does that leave us?
Just as the D.C. Council was poised to walk back its 2021 unfunded noncompete ban and permit noncompetes for most people earning over $150,000, the D.C. Council amended the amendment to exempt broadcast industry employees, regardless of how much they earn. The final amendment is now with the Mayor.
D.C. is on the verge of walking back its noncompete ban, and putting in place a $150,000 wage threshold. The change is likely to be final in the next month and take effect October 1, 2022. Are you ready? You have some time, but you won’t want to miss the deadline.
The day an employee shows up for their first day of work is often the day they learn that a noncompete is a requirement of the job. But, according to a 2015 study by Professors Evan Starr, J.J. Prescott, and Norm Bishara, providing advance notice that a noncompete will be required actually leads to 11% more training and 6.6% more job satisfaction.
With one month left and no agreed-upon fix to D.C.’s problematic noncompete law, the D.C. Council has voted to postpone the law’s effective date until October 1, 2022.
As you will recall, 37 states — i.e., more than 3/4 of all states — have been taking a hard look at their noncompete laws in the past several years, with 24 states, plus D.C., making changes....
The D.C. Council held two proceedings related to its recent noncompete ban last week. During both, at-Large Councilmember Elisa Silverman recommended pushing back the implementation date of the new law to April 1, 2022. During the hearing, the Council received wide-ranging testimony about a potential amendment: some objective, verifiable input and some partisan rhetoric; some spot on and some inaccurate. Now we wait.