D.C. Code § 32-581.03

Current through codified legislation effective September 18, 2024
Section 32-581.03 - Limitations on non-compete provisions for highly compensated employees.
(a) For a non-compete agreement between an employer and a highly compensated employee executed on or after October 1, 2022, to be valid and enforceable:
(1) The agreement must specify:
(A) The functional scope of the competitive restriction, including what services, roles, industry, or competing entities the employee is restricted from performing work in or on behalf of;
(B) The geographical limitations of the work restriction; and
(C)
(i) If the employee is not a medical specialist, a term of non-competition that does not exceed 365 calendar days from the date the employee separates from employment with the employer; or
(ii) If the employee is a medical specialist, a term of non-competition that does not exceed 730 calendar days from the date the employee separates from employment with the employer; and
(2) The employer shall provide the non-compete provision to the employee in writing:
(A) At least 14 days before the individual commences employment for the employer; or
(B) If the employer already employs the highly compensated employee, at least 14 days before the employee must execute the agreement.
(b)
(1) No employer may retaliate or threaten to retaliate against a highly compensated employee who has executed a non-compete agreement with the employer for asking for a copy of a proposed non-compete provision or non-compete agreement or for a copy of a non-compete provision or non-compete agreement that the employee executed;
(2) No employer may retaliate or threaten to retaliate against a highly compensated employee for:
(A) Asking the employer for the information required to be provided to the employee pursuant to section 103 a; or
(B) Asking about or objecting to a proposed non-compete provision or agreement because the employee reasonably believes that the provision or agreement does not conform to the requirements of subsection (a)(1) of this section or reasonably believes that the employer has failed to comply with the requirements of subsection (a)(2) of this section to:
(i) An employer, including the highly compensated employee's employer;
(ii) A coworker;
(iii) The highly compensated employee's lawyer or agent; or
(iv) A governmental entity.

D.C. Code § 32-581.03

Amended by D.C. Law 24-175,§ 2, 69 DCR 009910, eff. 9/21/2022.
Added by D.C. Law 23-209,§ I-103, 68 DCR 003423, eff. 3/16/2021.