In passing the Ban on Non-Compete Agreements Amendment Act of 2020, Washington, D.C., joins California and a handful of other states in prohibiting virtually all non-competes. Key Points:

..The Act invalidates non-competes entered into on or after the Act’s applicability date, which is not yet determined.

..The Act prevents D.C. employers from prohibiting D.C. employees from simultaneously or subsequently being employed or engaged by a competitor or other third party, subject to only a few exceptions, leaving open to interpretation the scope of businesses and workers covered by the Act.

..The Act does not prohibit a non-compete entered into by the seller upon a sale of a business, but whether any equity holder would fall within this exception is unclear.

..The Act requires D.C. employers to provide notice of the Act to existing D.C. employees within 90 days of the Act’s applicability date and to new D.C. employees within seven days of hire.

..Employers who violate the Act face a range of monetary relief to affected employees and administrative penalties.