D.C. non-compete law: D.C. Code 32-581 for recruiters

Washington, D.C. bans non-competes for most workers and allows them for highly paid ones only on strict terms. As of October 2026, under the Ban on Non-Compete Agreements law at D.C. Code section 32-581.02, an employer may not require or even request a non-compete from an employee who works mainly in the District and earns less than $162,164 a year ($270,274 for medical specialists), the 2026 figures from the Department of Employment Services. Above that line, a non-compete must be in writing, define its scope and geography, last no more than 365 days (730 for medical specialists), and reach the employee at least 14 days before they start, with a notice whose wording is set by statute. For recruiters, D.C. turns on the offer amount, where the person will work and the calendar.

The general screen is in non-compete questions for candidates; agency-side clauses are in non-solicitation clauses for recruiters; the District's other hiring rules are in hiring employees in the District of Columbia.

Who is covered by the D.C. ban?

The ban protects a "covered employee," defined in section 32-581.01 as an employee who is not highly compensated and who either spends more than 50 percent of their work time for the employer in the District, or whose job is based in the District and who regularly spends a substantial amount of work time there and not more than 50 percent in another jurisdiction. For someone who has not started yet, the same tests apply to where the employer "reasonably anticipates" the work will happen. "Employee" includes a person who has received an offer.

Since October 1, 2022, an employer may not "require or request" that a covered employee sign an agreement or follow a workplace policy with a non-compete provision, and one signed on or after that date "shall be void as a matter of law and unenforceable." The ban also bars retaliation against an employee who refuses to sign, does not comply, or asks about or complains about such a provision.

What is the 2026 threshold, and what counts as pay?

The statute set the starting threshold at $150,000, or $250,000 for medical specialists, and indexes it each January to the Washington-area Consumer Price Index. The Department of Employment Services' 2026 public notice says that as of January 1, 2026, the restriction applies to employees "earning less than $162,164 and to medical specialists earning less than $270,274."

• What counts. "Compensation" includes hourly wages, salary, bonuses or cash incentives, commissions, overtime premiums, vested stock including restricted stock units, and other regular or irregular payments. It excludes fringe benefits not paid in cash.
• Whose pay. A highly compensated employee is one reasonably expected to earn at least the threshold from the employer over a consecutive 12-month period, or who earned at least that much from the employer in the 12 months before the non-compete term begins. For a new hire, that is the offer, not the candidate's current salary.
• Medical specialists. A highly compensated employee primarily delivering medical services who is a licensed physician, has completed a residency and earns at or above the specialist threshold.
• Broadcast employees. The definition of highly compensated employee excludes broadcast employees, the on- or off-air creators at TV, radio, cable and similar outlets, so the ban covers them whatever they earn.

What must a non-compete with a highly paid employee contain?

The required notice begins: "The District's Ban on Non-Compete Agreements Amendment Act of 2020 limits the use of non-compete agreements." It goes on to say the employer has determined the person is a highly compensated employee and points them to the Department of Employment Services. Use the exact text from the Code, not a paraphrase.

What is not a non-compete under D.C. law?

The statute defines a non-compete provision as one in a written agreement or workplace policy "that prohibits an employee from performing work for another for pay or from operating the employee's own business." It then excludes otherwise lawful provisions that:

• are part of the sale of a business;
• protect confidential or proprietary employer information, which the Code defines to include customer and client lists and trade secrets under section 36-401;
• restrict outside paid work during employment because of confidentiality, conflict-of-interest rules, a university's conflict of commitment, or legal and contract compliance; or
• provide a long-term incentive, such as equity, options or multi-year performance bonuses.

The definition does not mention customer non-solicitation clauses. Whether a particular non-solicit counts as a provision that stops someone "performing work for another for pay" is a question for counsel, not the recruiter.

What are the penalties?

Under section 32-581.04, the Mayor may assess administrative penalties of $350 to $1,000 per violation (at least $1,000 for retaliation), and employees can file an administrative complaint or sue. Relief payable to each affected employee includes $500 to $1,000 for requiring or requesting a banned non-compete; at least $1,500 for trying to enforce a void one; $1,000 to $2,500 for retaliation; $250 for a missing disclosure; and at least $3,000 for repeat violations. The rights are in addition to common law and other statutes.

What should a recruiter ask a D.C. candidate?

D.C. bars employers from screening candidates on wage history or requiring it as a condition of an interview, and the threshold is measured against the new employer's pay anyway, so there is no reason to ask what the candidate earns now; see the D.C. salary history ban guide.

D.C. CANDIDATE: restrictive agreements

1. "Have you signed a non-compete, a non-solicit, or a
    confidentiality agreement with your current or a past employer?"
2. "Where do you do most of your work for them: in D.C., or mostly
    in Maryland, Virginia or elsewhere?"
3. "Roughly when did you sign it: before or after October 1, 2022?"
4. "How long does it run after you leave, and does it say what roles
    or companies it covers?"
5. "Did you get it in writing at least two weeks before you started?"
6. "Is your work broadcasting, or are you a physician?"
7. "Could the hiring company's lawyer see it, as far as it allows?"
Always: "We don't want any confidential information, documents or
client lists from your current employer."

• Metro-area candidates often split time across D.C., Maryland and Virginia. The 50 percent tests decide whether D.C. law applies; for Virginia's rules, see the Virginia non-compete page.
• Do not tell a candidate their agreement is void because they earn under the threshold. Pass on the facts.

When your client is the D.C. employer

The 14-day rule changes the offer calendar. If a D.C. client wants a non-compete with a new hire above the threshold, the written agreement and the statutory notice must reach the candidate at least 14 days before the start date, so a Friday offer for a Monday start cannot carry one. For hires below the threshold, the client may not even request a non-compete. Confirm both on the offer call, and check that the offer letter's pay figure supports the highly compensated label the notice asserts.

Is there a federal rule on top of D.C.'s?

No. The FTC's 2024 rule was set aside in court; the Commission voted on September 5, 2025 to accept the vacatur, and a February 12, 2026 notice removed it from the Code of Federal Regulations. The District's own law governs, as of October 2026.

D.C. checklist

• Restrictive-agreement question asked of every candidate for the role, in the same words.
• Recorded: where the candidate's work time is spent, signing date, length, scope and geography.
• Broadcast and physician roles flagged.
• No current-pay questions; the threshold is tested against the client's offer.
• Client's non-compete and statutory notice delivered at least 14 days before the start date.
• Threshold re-checked each January on the Department of Employment Services notice.