DC Noncompete Law

Are Non-Compete Agreements Enforceable in Washington, DC?

For many DC employees, the answer is no. On October 1, 2022, DC enacted a law making it illegal for employers to impose non-compete policies or clauses (noncompetes) on certain District employees based on an income threshold. This threshold has increased over the years, and as of January 1, 2026, employees who make under $162,164 per year (or less than $270,274 a year for medical specialists) cannot be subject to non-competes. Noncompetes are still enforceable for employees with incomes above the threshold but now have limitations and require employers to provide advance notice.

What is DC’s Non-Compete Law?

DC’s non-compete law ensures that workers are free to find new jobs, hold multiple jobs, or start their own businesses, and that businesses are free to compete against each other. Non-competes entered into on January 1, 2026, or later are illegal to impose on D.C. employees with an income of less than $162,164 a year (or less than $270,274 a year for medical specialists). Non-compete provisions, typically found in employment contracts, limit a person’s ability to work for, or start their own, competing business. Non-competes hurt workers by inhibiting mobility and keeping wages lower. They also can harm businesses by making it harder to recruit new workers.

Further, the duration of non-competes for highly compensated medical employees cannot exceed 365 calendar days from separation date. For highly compensated medical specialists, the duration cannot exceed 730 calendar days from the separation date.

Can You Enforce a Non-Compete in DC Against Lower-Level Employees?

No. You cannot enforce a DC non-compete against a lower-level employee. If an employee’s income is lower than $162,164 annually, or less than $270,274 for medical specialists, any new non-compete agreement is unenforceable.

Is D.C.’s Non-Compete Law Retroactive?

No, D.C.’s non-compete law is not retroactive. The law and subsequent amendments do not affect non-competes in effect prior to their enactment. That said, employers should consult an employment lawyer prior to changing an existing agreement that includes a non-compete, and employers should update their employment policies and agreements annually to ensure that they are compliant with new laws and regulations.

Who Should I Contact If I Have Specific Questions About DC Non-Compete Law?

Contact the Lipp Law Firm, PC if you need help with questions about Washington, DC non-compete law, or any DC employment laws. Our clients include both employers and employees, so an experienced attorney will be able to answer your questions. If you’re an employer looking for advice on enforceable non-competes or an employee wondering how the law impacts them, contact us today to learn more. Get in touch here.