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Non-Compete Laws in District of Columbia2026 Guide

DC has the highest non-compete salary threshold in the country — $162,164/year. If you earn above that and were terminated without cause, your non-compete is still unenforceable. Most workers don't know this protection exists.

District of Columbia Non-Compete Law: Statutory Framework & Judicial Standards

Last updated March 2026. For informational purposes only — does not constitute legal advice. Consult a licensed attorney in District of Columbia for guidance on your specific situation.

§ 1. Governing Statutory & Common Law Authority

The enforceability of non-competition agreements in District of Columbia is governed by D.C. Code § 32-581.01 et seq.. Non-compete Ban Amendment Act of 2020: non-competes banned for employees earning under $162,164/year (2026). Even highly compensated employees must meet strict requirements.

Recent legislative developments: Amended in 2022 to add salary threshold (originally was a near-total ban). 2026 threshold is $162,164.

§ 2. Compensation Threshold Requirements

District of Columbia imposes a statutory compensation threshold for non-compete enforcement. Under current law, non-compete covenants are presumptively void for employees earning below the statutory minimum. 2026 threshold; adjusted annually. Highest threshold in the US. The threshold is $162,164/year — but whether your total compensation qualifies depends on how your state counts bonuses, commissions, and equity.

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§ 3. Temporal Limitations on Post-Employment Restrictions

District of Columbia limits enforceable non-compete duration to 12 months from separation. Non-competes cannot exceed 1 year, even for highly compensated employees. Agreements exceeding this cap may be subject to judicial modification or voided entirely.

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§ 4. Statutory Exemptions & Carve-Outs

District of Columbia law exempts certain workers from non-compete enforcement:

  • Medical specialists may have different rules

§ 5. Consideration & Contract Formation

Must provide at least 14 days written notice before effective date. For existing employees, must be signed before a change in employment terms. Whether this is legally sufficient — especially for agreements presented mid-employment rather than at hiring — is frequently contested.

§ 6. Effect of Involuntary Termination

Non-competes unenforceable if employee is terminated without cause. Courts may apply heightened scrutiny when the employer initiated the termination, particularly for termination without cause or mass layoffs.

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Practitioner Notes

Highest salary threshold in the US. Employers must also provide a copy of the agreement and a notice of employee rights.

For informational purposes only. Consult a licensed employment attorney in District of Columbia for advice specific to your circumstances.

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Enforceability Assessment

Based on your salary of $XX,XXX and your state's threshold of $XX,XXX, your non-compete is...

This determination is based on a cross-reference of your specific compensation against the statutory threshold, the duration of your restriction, your industry classification, and the circumstances of your departure. The following sections detail each factor.
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National Precedent

Notable non-compete cases

These nationally significant cases illustrate common non-compete disputes.

Employee won2016 · IL · Food Service

Jimmy John's Forced Sandwich Makers to Sign Non-Competes Barring Work at Any Deli

Jimmy John's required its sandwich makers and delivery drivers -- workers earning near minimum wage -- to sign non-compete agreements prohibiting them from working at any business that sold 'submarine, hero-type, deli-style, pita, and/or wrapped or rolled sandwiches' within two miles of any Jimmy John's location in the United States for two years after leaving. The Illinois Attorney General filed a lawsuit in June 2016, and the New York Attorney General launched a separate investigation. Workers who wanted to leave for a better-paying food service job were effectively locked out of the entire sandwich industry.

Outcome

Jimmy John's agreed to stop using non-compete clauses in hiring packets nationwide, paid $100,000 to fund education and outreach programs, and was required to notify current and former employees that their non-competes would not be enforced.

Source: CNBC→
Employee won2025 · National · Pet Services

Pet Cremation Company Locked 1,800 Workers -- Including Hourly Laborers and Drivers -- Into Nationwide Non-Competes

Gateway Services, the largest pet cremation business in the U.S. with over 100 locations serving 17,000 veterinary clinics, imposed non-compete agreements on nearly 1,800 employees prohibiting them from working anywhere in the pet cremation industry in the entire United States for one year after leaving. The agreements were applied without any individualized consideration of an employee's role -- hourly cremation facility laborers, drivers, and customer service staff were subject to the same nationwide restrictions as executives. The FTC filed an enforcement action in September 2025, marking a shift to case-by-case non-compete enforcement after its blanket ban was struck down.

Outcome

In November 2025, the FTC finalized a consent order requiring Gateway to stop enforcing all existing non-competes and banning it from entering into similar agreements in the future, freeing nearly 1,800 workers.

Source: Federal Trade Commission→

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