DC Proposes to Ban Non-Competes In Physician Employment Agreements

The DC Council today unanimously enacted a ban on non-competition agreements in employment contracts in the District of Columbia, except for medical specialists earning at least $250,000 per year. The proposed law does not have retroactive effect but renders void non-compete agreements executed after its enactment. The Ban on Non-Compete Agreements Amendment Act of 2020, DC Code § 32-1307.01, provides: “No employer may require or request that an employee sign an agreement that includes a non-compete provision.” The Act prohibits employers from requiring employees not to work a second job or operate a business. The Act further prohibits employers from retaliating against employees, imposes mandatory penalties for each violation, and provides for administrative enforcement by the Mayor.  With respect to physicians who have completed a residency and earn $250,000 per year, the Act requires an employer to provide 14 days advance notice to the physician prior to execution of any non-compete agreement and imposes a penalty of $3,000 for each affected employee for retaliating against a physician or otherwise failing to provide the requisite notice under the Act.

Absent veto by the DC Mayor, the Ban on Non-Compete Agreements Amendment Act of 2020 is likely to become law in the District next year.