It has certainly been a long time coming, but the ban on non-compete clauses in the Nation’s Capital finally became effective on October 1. Initially passed almost two years ago, the effective date of the law had been delayed several times while the business community worked with the DC City Council to iron out some significant amendments. The final act was signed by Mayor Muriel Bowser on July 27, 2022. Among the many amendments that were adopted in the final product, is a much narrower scope of what constitutes a prohibited “non-compete provision” that modified the term’s definition and expressly excluded certain categories from the definition. Under the redefinition, the non-compete provision now covers restriction during an employee’s employment as well as employer policies, not just agreements with employees. Furthermore, non-compete provisions are permitted in the case of “highly-compensated employees”, defined for our purposes as an employee earning a minimum $150,000 annual salary. As one would expect, the act prohibits retaliation against an employee who rejects a non-compete provision and includes additional notice obligations on the employer when they have a workplace policy that includes one or more exceptions to the definition of “non-compete provision.” In those instances, the employer is required to provide a written copy within 30 days of an employee’s acceptance of employment; within 30 days after the October 1, 2022 effective date; and any other time such policy changes. Violations of the law carry administrative penalties between $350 and $1,000 for each violation as well as a private cause of action for aggrieved persons.