Fired for Refusing to Sign a Non-Compete in D.C.? What a Wrongful Termination Attorney in DC Wants You to Know

Your manager hands you a new agreement that bars you from working for a competitor for a year after you leave, and you are told to sign by Friday or find another job. In Washington, that ultimatum is illegal for most workers. Since October 1, 2022, D.C. law has voided non-competes for employees below a high pay threshold and made it unlawful to punish anyone who refuses to sign one. If you were fired, demoted, or threatened over a non-compete, a wrongful termination attorney in DC can tell you whether the law was broken and what you can recover.

Can a D.C. employer fire you for refusing to sign a non-compete?

No, not if you are a covered employee earning below the pay threshold. The Ban on Non-Compete Agreements Amendment Act, as revised by the Non-Compete Clarification Amendment Act of 2022, bars employers from retaliating against workers who refuse to agree to a prohibited non-compete. A non-compete, in the statute’s terms, is a provision that stops a worker from performing work for another employer or running their own business.

The law defines retaliation broadly. A threat, a verbal or written warning, a cut in hours, a suspension, and a termination all count. The protection also covers an employee accused of violating a prohibited non-compete, and one who asks or complains about whether a clause in their agreement is legal. An employee who questions the provision with HR and is let go two weeks later may have a retaliation claim even without a formal refusal.

Who does the D.C. non-compete ban protect in 2026?

Most private-sector employees who work primarily in the District. For 2026, the D.C. Department of Employment Services (DOES) sets the highly compensated employee threshold at $162,164 in total annual compensation, and $270,274 for medical specialists. Anyone earning less cannot be asked to sign a non-compete, and a non-compete they signed on or after October 1, 2022 is void.

Coverage turns on where you work. A covered employee generally spends more than half of their work time in D.C., or is based in D.C. and regularly works here without spending more than half their time in another state. Compensation includes salary, bonuses, and commissions, but not non-cash fringe benefits such as health insurance. Because the threshold rises each January, someone who cleared the original $150,000 figure in 2022 may fall below it now.

What makes a non-compete legal for a highly compensated employee?

Even above the threshold, an employer must follow specific rules or the agreement fails. Under D.C. law, the non-compete must:

• Be in writing and given to the employee at least 14 days before they start work or must sign it
• Come with a statutory notice explaining the D.C. law and stating that the employer considers the worker highly compensated
• Spell out its functional scope, such as the services, roles, or competitors covered, along with the geographic area
• Last no longer than 365 days after separation, or 730 days for medical specialists

An employer that hands a high earner a non-compete on Thursday and demands a signature Friday has skipped the 14-day review period. Retaliation protection applies at this level too. A highly compensated employee cannot be punished for asking for a copy of a proposed or signed non-compete.

Which restrictions are still allowed under D.C. law?

The ban targets non-competes, not every restriction in an employment contract. Confidentiality agreements that protect trade secrets and proprietary information remain enforceable, and so do non-competes a seller signs as part of selling a business. Long-term incentive agreements for highly compensated employees may also carry non-compete conditions. Employers can limit outside work in narrower situations, for example when a second job would expose confidential information or create a conflict of interest under industry rules.

Non-solicitation clauses, which bar you from recruiting former coworkers or clients, are not directly addressed by the statute and are judged under general contract principles. When one agreement mixes several of these provisions, the non-compete portion can be void while the rest still binds you.

What can you recover if you were fired over a non-compete?

An employer that retaliates is liable to each affected employee for $1,000 to $2,500 per instance of retaliation, under D.C. Law 24-175. Separately, an employer that unlawfully requires a non-compete owes each affected worker $500 to $1,000 per violation. The District can also impose administrative penalties of $350 to $1,000 per violation, with a floor of $1,000 for retaliation, and repeat violators face amounts starting at $3,000.

You can file an administrative complaint with DOES or bring a civil action in court, and you do not have to go to the agency first. Attorneys’ fees are recoverable. A firing over a non-compete can also overlap with other claims, such as discrimination under the D.C. Human Rights Act or unpaid wages, which can add lost pay and other damages to the statutory amounts.

When should you contact a wrongful termination attorney in DC?

As soon as an employer ties your job to a non-compete, and before you sign anything new on the way out. Severance packages sometimes include fresh restrictive covenants or a release that waives the very claims you would want to bring. Keep the agreement, the date you received it, any notice that came with it, and the emails or messages around the deadline you were given. Write down who said what when you raised concerns, and gather your total compensation for the past year so your status can be checked against the threshold.

A wrongful termination attorney in DC can review the agreement, confirm whether you are a covered employee, and advise whether to pursue the claim through DOES, in court, or as part of a severance negotiation.

Standing Up to an Unlawful Non-Compete

D.C. has put non-competes off-limits for workers earning under $162,164 in 2026, and it treats punishing someone for refusing one as a separate violation with its own penalties. If you lost your job, had your hours cut, or were warned after pushing back on a non-compete, the law gives you real options. The Mundaca Law Firm represents employees throughout the District in retaliation and wrongful termination matters. Schedule a confidential consultation with a wrongful termination attorney in DC to review your agreement and protect your next career move.