3 Councilmember Elissa Silverman
6 A BILL
9 IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
12 To amend the Ban on Non-Compete Agreements Amendment Act of 2020 to clarify that bona
13 fide conflict of interest provisions in workplace policies do not violate the laws
14 restrictions on the use of non-compete provisions; to clarify that employers may bar an
15 employees use, in addition to the disclosure, of confidential, proprietary, or sensitive
16 information, client lists, customer lists, or trade secrets during or after the employees
17 employment for the employer; and to amend the Minimum Wage Revision Act of 1992 to
18 modify the existing Notice of Hire form to inform employees of the Ban on Non-
19 Compete Agreements Amendment Act of 2020.
21 BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this act may
22 be cited as the Non-Compete Conflict of Interest Clarification Amendment Act of 2021.
23 Sec. 2. The Ban on Non-Compete Agreements Amendment Act of 2020, effective March
24 16, 2021 (D.C. Law 23-209; D.C. Official Code 32-581.01 et seq.) is amended as follows:
25 (a) Section 101 is (D.C. Official Code 32-581.01) is amended as follows:
26 (1) A new paragraph (1A) is added to read as follows:
27 (1A) Bona fide conflict of interest provision means an otherwise lawful
28 written provision or workplace policy that bars an employee from accepting money or a thing of
29 value from a person during the employees employment with the employer because the employer
30 reasonably believes the employees acceptance of money or a thing of value from the person will
31 cause the employer to:
32 (A) Conduct its business in an unethical manner; or
33 (B) Violate applicable local, state, or federal laws or rules..
34 (3) Paragraph (5) is amended as follows:
35 (A) Subparagraph (A) is amended as follows:
36 (i) Strike the word disclosing and insert the phrase disclosing or
37 using in its place.
38 (ii) Strike the phrase ; or and insert a semicolon in its place.
39 (B) Subparagraph (B) is amended by striking the period and adding the
40 phrase ; or in its place.
41 (C) A new subparagraph (C) is added to read as follows:
42 (C) A bona fide conflict of interest provision..
43 (b) Section 102(c) (D.C. Official Code 32-581.02(c)) is amended by striking the phrase
44 No employer and inserting the phrase With the exception of a bona fide conflict of interest
45 provision, no employer in its place.
46 (2) Subsection (d) is amended as follows:
47 (A) Paragraph (3)(D) is amended by striking the phrase ; or and
48 inserting a semicolon in its place.
49 (B) Paragraph (4) is amended by striking the period and inserting the
50 phrase ; or in its place.
51 (C) A new paragraph (5) is added to read as follows:
52 (5) Asking the employer whether the employees acceptance of money or a thing
53 of value from another person during or after the employees employment for the employer
54 violates the employers workplace policy.
55 Sec. 2. Section 9 of the Minimum Wage Revision Act of 1992, effective (D.C. Law 9-
56 248; D.C. Official Code 32-1008(c)), is amended by adding a new paragraph (4B) to read as
58 (4B) The statement required by section 102(e)(2) of the Ban on Non-Compete
59 Agreements Amendment Act of 2020, effective March 16, 2021 (D.C. Law 23-209; D.C.
60 Official Code 32-581.02(e)(2)).
61 Sec. 3. Fiscal impact statement.
62 The Council adopts the fiscal impact statement in the committee report as the fiscal
63 impact statement required by section 4a of the General Legislative Procedures Act of 1975,
64 approved October 16, 2006 (120 Stat. 2038; D.C. Official Code 1-301.47a).
65 Sec. 4. Effective date.
66 This act shall take effect following approval by the Mayor (or in the event of veto by the
67 Mayor, action by the Council to override the veto), a 30-day period of congressional review as
68 provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December
69 24, 1973 (87 Stat. 813; D.C. Official Code 1-206.02(c)(1)), and publication in the District of
70 Columbia Register.