News

After years of work, the new DC law banning non-compete has come online. The law and its legislative fixes have implications for physicians and workers in the practice. The below analysis is thanks to MSDC's law firm Whiteford Taylor Preston.

The law prohibits agreements and employment contracts that prohibit or discourage competition in employment, as well as prohibiting the prohibition on secondary employment. The law applies to employees who perform, "at least 50% of their work in Washington DC or employee who an employer reasonably anticipates will perform work on behalf of the employer".

For physicians, the exceptions in the law will be the rule. The law exempts "medical specialists" who have a salary of $250,000 or more, or highly compensated employees making $150,000 or more. Medical specialists must meet four requirements to qualify in the exemption:

• They have a DC medical license
• They are trained as a physician
• They are post-residency
• They have $250,000 or more in compensation

For employees covered by the law, it provides the following:

• Employers cannot require a non-compete in a contract
• Employers may not have a non-compete policy
• Employers may not have a prohibition on secondary employment

MSDC took no position on the legislation after consideration by the MSDC Advocacy Committee and MSDC Board. However, MSDC did and continues to provide information and resources on the law. Physicians with questions can contact our office to learn more about the law going into effect.