As we previously reported, earlier this year the District of Columbia enacted the The Ban on Non-Compete Agreements Amendment Act (the “Act”), which creates the broadest non-compete ban in the country.  The Act essentially bars post-employment non-competition agreements as well as prohibitions on simultaneous work for other employers.  Although the Act became law in March, its restrictions are tied to its “applicability date,” which is defined as “the date of inclusion of its fiscal effect in an approved budget and financial plan.”  In addition to scrambling to figure out how to comply with the new law, the Act’s “applicability date” left employers uncertain about when the Act would take effect.  That uncertainty has now been lifted.

On August 23, 2021, Mayor Bowser signed the Fiscal Year 2022 Budget Support Emergency Act of 2021, which among many other things amends the Act’s applicability date provision to state:  “This act shall apply as of April 1, 2022.”

This development gives employers certainty about when the law will go into effect.  The delayed applicability date of the Act also gives employers some hope the Act will be amended before April 1, 2022.  As previously reported, amendments to the Act have been proposed, though there have been no developments on that front since a July 14, 2021 hearing.

We will continue to report on developments on the Act.

 

 

 

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Photo of Guy Brenner Guy Brenner

Guy Brenner is a partner in the Labor & Employment Law Department and leads the Firm’s Washington, D.C. Labor & Employment practice. He is head of the Government Contractor Compliance Group, co-head of the Counseling, Training & Pay Equity Group and a member…

Guy Brenner is a partner in the Labor & Employment Law Department and leads the Firm’s Washington, D.C. Labor & Employment practice. He is head of the Government Contractor Compliance Group, co-head of the Counseling, Training & Pay Equity Group and a member of the Restrictive Covenants, Trade Secrets & Unfair Competition Group. He has extensive experience representing employers in both single-plaintiff and class action matters, as well as in arbitration proceedings. He also regularly assists federal government contractors with the many special employment-related compliance challenges they face.

Guy represents employers in all aspects of employment and labor litigation and counseling, with an emphasis on non-compete and trade secrets issues, medical and disability leave matters, employee/independent contractor classification issues, and the investigation and litigation of whistleblower claims. He assists employers in negotiating and drafting executive agreements and employee mobility agreements, including non-competition, non-solicit and non-disclosure agreements, and also conducts and supervises internal investigations. He also regularly advises clients on pay equity matters, including privileged pay equity analyses.

Guy advises federal government contractors and subcontractors all aspects of Office of Federal Contract Compliance Programs (OFCCP) regulations and requirements, including preparing affirmative action plans, responding to desk audits, and managing on-site audits.

Guy is a former clerk to Judge Colleen Kollar-Kotelly of the US District Court of the District of Columbia.