A new law in the District of Columbia banning noncompete employment agreements took effect March 16. Washington DC Attorney General Karl Racine said the new law affects most workers in the district.

Noncompete clauses in employment contracts prohibit workers from pursuing employment similar to their current role, working for another employer who competes against their current employer or operating their own business. Such clauses can vary in terms of duration and geographic scope.

The office reported there are exemptions for:

• Highly compensated medical workers and their employers. For this to apply, a medical worker must have a license to practice medicine, have completed a medical residency, work for an employer who primarily provides medical services and earn more than $250,000 a year. Such specialists must have been shown the clause at least 14 days before it is executed in order for it to be enforceable.
• Volunteers for education, nonprofit or charitable organizations who are not being paid.
• Religious officials.
• Babysitters who work in or around the residence of the employer.

However, the new law does not ban businesses from entering into agreements with employees that prevent workers from disclosing the employer’s confidential, proprietary or sensitive information; the employer’s client list; or the employer’s trade secrets.

The law also does not prevent the seller of a business from entering a contract with the buyer of the business stating that the sellers agrees not to compete with the buyers’ business.