District of Columbia: A Labor & Employment Overview

Recent Developments in the Legal Landscape

For decades, the District has been one of the leaders in the United States in adopting employee protections, including expanded equal employment opportunity (EEO) laws, significant restrictions on non-compete agreements, wage payment and pay transparency, expanded rights under the Family and Medical Leave Act (FMLA), high minimum and living wage rates, and the right to paid sick leave. In most instances, the threshold for coverage is low – eg, an employee based in another state who works most or a substantial amount of his or her time in the District would qualify – and the penalties for employers are high. It is critical that employers identify employees who are covered by DC wage and employment laws and modify their policies and procedures to comply with these requirements.

The following developments have or will occur in 2026:

• Non-compete restrictions: Effective October 1, 2022, the District banned by statute many non-compete agreements. As of January 1, 2026, the statutory prohibition applies to employees earning less than USD162,164 and medical specialists earning less than USD270,274. 
• Pay transparency: Since January 1, 2026, employers have been required to itemize all sources of compensation on employees’ pay stubs, including wages, bonuses, commissions, tips, and service charges.
• Minimum wage increases: Several increases in the minimum and living wages have taken, or will go into, effect in 2026:
  • From January 1, 2026 through June 30, 2026, any District contract or recipient of government assistance with a value of USD100,000 or more must pay at least the living wage rate of USD17.95 per hour to District employees.
  • On July 1, 2026, both the minimum wage rate and the living wage rate will increase to USD18.40 per hour.
  • For tipped employees, the base minimum wage increases to USD10.30 per hour on July 1, 2026.
• DC Human Rights Act amendments: As a consequence of amendments that went into effect in 2025, the D.C. Human Rights Act has a two-year statute of limitations, broader definitions of harassment, and more options for moving cases from the Office of Human Rights to court.

Overview of the Law

Contract claims

Like most jurisdictions, employment in the District is generally at will. Unless the employer and employee have entered into a contract for a fixed duration or that sets the process and/or consequences of termination, employees may be terminated at any time and for any reason, other than a reason that violates the law. Courts have generally enforced contract provisions, such as termination for cause and change in control provisions, that provide enhanced protections from or compensation upon termination.

As noted above, the Ban on Non-Compete Agreements Amendment Act prohibits employers from requesting and entering into covenants not to compete with employees earning under specified thresholds, except in limited circumstances, such as the sale of a business. The Act prohibits employers from retaliating against applicants and employees who refuse to sign prohibited non-competes. The Act applies to non-compete agreements signed on or after October 1, 2022. District of Columbia Courts permit other types of post-employment restrictions – including reasonable anti-solicitation, anti-disclosure and non-disparagement provisions. 

EEO protections

The Fairness in Human Rights Administration Amendment Act, which became effective October 1, 2025, adopted three major changes to the D.C. Human Rights Act for claims against private employers:

1. it broadened the definition of sexual harassment to cover conduct based on sex, gender, sexual orientation, or gender identity or expression;
2. it extended the statute of limitations for filing DCHRA claims in court from one year to two years; and
3. it expanded the circumstances in which complainants may withdraw an OHR charge and proceed in court.

The District of Columbia has a number of laws that provide protections beyond those imposed by the federal law. The DCHRA, for instance, prohibits discrimination and harassment against a broad range of protected categories. It also has a broad prohibition against retaliation for complaining about conduct that violates the DCHRA. The District has also adopted expanded protections for employees impacted by pregnancy, childbirth and related medical conditions.

Wage payment and pay transparency

The District of Columbia Wage Theft Prevention Act requires employers to provide specified information relating to employees’ compensation at the time of hire. Moreover, under the Pay Transparency Act, employers may not prohibit employees from disclosing or discussing their own wages or the wages of other employees or from making complaints or participating in the investigation of complaints of pay discrimination and may not retaliate against employees for engaging in these actions.

District law addresses the timing of payment upon termination. Employees who are terminated must be paid on the next working day, other than Saturdays, Sundays and legal holidays, unless the employee is responsible for monies belonging to the employer. If the employee resigns or quits, he or she must be paid within the earlier of seven days or the next regularly scheduled payday. The District also has its own health care continuation law that applies to employers with less than 20 employees

Protections for applicants

The District has enacted several provisions designed to protect applicants from hiring decisions that may have a disparate impact on protected categories:

• The Wage Transparency Omnibus Amendment Act of 2023 requires employers to provide the minimum and maximum projected salary or hourly pay in all advertised job listings and position descriptions. 
• This Act also restricts employers from screening job applicants based on their wage history. An employer may not require or request that a job applicant disclose his wage history or seek an applicant’s wage history from a previous employer.
• The Fair Criminal Record Screening Act prohibits employers from asking applicants about their criminal history on their initial job application, subject to limited exceptions. After an employer has extended a conditional offer, it may not withdraw it or take adverse action based on criminal record, except for legitimate business reasons.
• The Fair Credit in Employment Amendment Act restricts employers’ ability to ask job applicants about their credit history or to refuse to hire based on that information. Employers also may not include in their job postings any preferences or limitations based on applicants’ credit history.

Leave laws

The District of Columbia provides leave protections to employees beyond those afforded by federal law. The District of Columbia FMLA requires employers to provide up to 16 workweeks of unpaid leave during any 24-month period for the birth or placement of a child, to care for a family member with a serious health condition, or for treatment for the employee’s own serious health condition.

The District’s Accrued Sick and Safe Leave Act (ASSLA) requires employers to provide paid sick and safe leave for:

1. medical conditions (and associated treatment) of the employee or his or her family members; and
2. reasons related to the stalking, domestic violence or sexual abuse of the employee or his or her family member.

Employers in the District also must provide the following forms of leave: parental leave, leave for jury duty, leave to serve as a witness, leave to attend school functions, leave for voting in elections, and leave on Emancipation Day.