[Washington DC] Noncompete agreements banned

Mayor Muriel Bowser has moved Washington, DC one step closer to implementing the broadest ban on noncompetition agreements in the country, SHRM reports the story with context from resources and articles from SHRM Online and other outlets. (All links via original reporting) 

Near complete ban

On January 11, Bowser signed into law a bill prohibiting nearly all noncompetes for workers in the District of Columbia, subject to very narrow exceptions. The law prohibits employers from barring employees from working for competitors both after their employment ends and during their employment. The National Law Review has further details.

Congress must review

The law cannot take effect until the expiration of a 30-day Congressional review period. It is expected to go into effect later this year when the District of Columbia's 2022 budget and financial plan are approved. JD Supra has further details.

Biden plans to ban noncompete, no-poaching clauses

President-elect Joe Biden has indicated that his administration will be more aggressive in minimising employers' use of noncompetition clauses in employment contracts and institute an outright ban on no-poaching agreements. Biden specifically said he will support federal legislation that would eliminate most noncompete agreements, only allowing those "that are absolutely necessary to protect a narrowly defined category of trade secrets." SHRM Online has further details.

Are noncompetes enforceable during the pandemic?

Organisations may want to review their noncompete agreements during this time and decide if it still makes business sense to enforce them. Employment laws have a societal component, and experts say that a judge's decisions regarding enforceability are affected by what's going on in people's day-to-day lives. SHRM Online has further details.

Handling applicants with noncompete agreements

Employers are understandably concerned if candidates have signed a noncompete agreement with the company they are currently working for. Making an offer to a top candidate only to discover they are bound by such an agreement can be costly both in terms of the recruitment process time already spent and the potential cost involved in attempting to prove the agreement is unenforceable or to negotiate different requirements. SHRM Online has further details.

Mayor Muriel Bowser has moved Washington, DC one step closer to implementing the broadest ban on noncompetition agreements in the country, SHRM reports the story with context from resources and articles from SHRM Online and other outlets. (All links via original reporting) 

Near complete ban

On January 11, Bowser signed into law a bill prohibiting nearly all noncompetes for workers in the District of Columbia, subject to very narrow exceptions. The law prohibits employers from barring employees from working for competitors both after their employment ends and during their employment. The National Law Review has further details.

Congress must review

The law cannot take effect until the expiration of a 30-day Congressional review period. It is expected to go into effect later this year when the District of Columbia's 2022 budget and financial plan are approved. JD Supra has further details.

Biden plans to ban noncompete, no-poaching clauses

President-elect Joe Biden has indicated that his administration will be more aggressive in minimising employers' use of noncompetition clauses in employment contracts and institute an outright ban on no-poaching agreements. Biden specifically said he will support federal legislation that would eliminate most noncompete agreements, only allowing those "that are absolutely necessary to protect a narrowly defined category of trade secrets." SHRM Online has further details.

Are noncompetes enforceable during the pandemic?

Organisations may want to review their noncompete agreements during this time and decide if it still makes business sense to enforce them. Employment laws have a societal component, and experts say that a judge's decisions regarding enforceability are affected by what's going on in people's day-to-day lives. SHRM Online has further details.

Handling applicants with noncompete agreements

Employers are understandably concerned if candidates have signed a noncompete agreement with the company they are currently working for. Making an offer to a top candidate only to discover they are bound by such an agreement can be costly both in terms of the recruitment process time already spent and the potential cost involved in attempting to prove the agreement is unenforceable or to negotiate different requirements. SHRM Online has further details.