Non-compete law in District of Columbia

Exceptions and special rules

• Sale of a business: the statute allows a non-compete given by a seller.
• Provision in or executed with an agreement between the seller of a business and its buyers by which the seller agrees not to compete (§ 32-581.01(15)(A))
• Provisions restricting disclosure, use, sale or access to confidential or proprietary employer information (§ 32-581.01(15)(B)(i))
• During employment, provisions barring acceptance of money or a thing of value for work for others where the employer reasonably believes it risks disclosure of confidential information, conflicts with established conflict-of-interest rules, is a conflict of commitment (higher-education employees) or impairs compliance with law or a contract (§ 32-581.01(15)(B)(ii))
• Provisions providing a long-term incentive (§ 32-581.01(15)(C))
• Valid collective bargaining agreement terms are not superseded by the chapter (§ 32-581.04a)
• Medical specialist. Higher qualifying compensation ($270,274 for 2026) and a maximum 730-day noncompete term; physician with license, completed residency, engaged primarily in delivering medical services. (D.C. Code §§ 32-581.01(12)-(13), 32-581.03(a)(1)(C)(ii))
• Broadcast employee (on- or off-air creator for a TV, radio, cable or satellite entity). The definition of 'highly compensated employee' excludes broadcast employees, so a broadcast employee who works mainly in D.C. is a 'covered employee' whose noncompete is void whatever the pay (derived from §§ 32-581.01(2), (6), (10)). (D.C. Code §§ 32-581.01(2), (6), (10))

Non-solicitation clauses

The chapter regulates a 'non-compete provision' defined as a provision that prohibits an employee from performing work for another for pay or from operating the employee's own business (§ 32-581.01(15)); non-solicitation covenants are not mentioned. Rights and remedies are cumulative of common law and other District law (§ 32-581.04b).

Contracts naming another state's law

No choice-of-law or forum clause in the chapter. Coverage turns on where the work is done: a 'covered employee' spends more than 50% of work time in the District, or is based in the District and regularly spends a substantial amount of time there and not more than 50% elsewhere; prospective employees are covered when the employer reasonably anticipates this (§ 32-581.01(6)).

Remedies

Mayor may assess administrative penalties of $350-$1,000 per violation (not less than $1,000 for retaliation violations) after notice and an opportunity for a hearing (§ 32-581.04(b)). Employee relief: $500-$1,000 for each requiring/requesting violation (at least $3,000 for a repeat); at least $1,500 where the employer tries to enforce a void or invalid provision; $1,000-$2,500 per instance of retaliation; $250 for a disclosure violation (§ 32-581.04(d)). Aggrieved person may file an administrative complaint with the Mayor or sue in court; Attorney General and Mayor enforce (§ 32-581.04(a), (c)). Retaliation for refusing, questioning or complaining about a noncompete is prohibited (§§ 32-581.02(b), 32-581.03(b)).

Which agreements it covers

Employees working in the District as described in § 32-581.01(6); employer includes prospective employers operating in the District; excludes D.C. and federal government employers and partners in a partnership (§ 32-581.01(7)-(8)). 2022-10-01 (void-as-a-matter-of-law rule applies to agreements entered into on or after Oct. 1, 2022; the highly-compensated-employee conditions apply to agreements executed on or after that date; § 32-581.02(a)(2), § 32-581.03(a))

Recent changes

• 2026-01-01. Annual CPI adjustment: threshold $162,164 (employees) and $270,274 (medical specialists), per DOES public notice. Source
• 2025-01-01. Annual CPI adjustment: $158,363 and $263,939, per DOES notice. Source
• 2022-10-01. Non-Compete Clarification Amendment Act of 2022 (D.C. Law 24-175) rewrote the ban (applies as of Oct. 1, 2022): highly-compensated exception, medical specialist tier, disclosures, penalties. Source