Washington, DC - Attorney General Brian L. Schwalb today announced that the Office of the Attorney General (OAG) successfully resolved three investigations into employers suspected of violating the District’s ban on non-compete agreements. Under the terms of separate settlement agreements, a healthcare staffing firm and a ping pong social club will collectively pay more than $150,000 to workers and the District, and both businesses, along with a food service company, will be required to change their policies to ensure compliance with the District’s ban on non-compete agreements, which went into effect on October 1, 2022. 

“The Office of the Attorney General is committed to standing up for DC workers and aggressively enforcing the laws that protect their rights—including the District’s ban on non-compete agreements,” said AG Schwalb. “Employers and workers should be aware that in 2022, a new law went into effect banning non-compete agreements for many DC workers. This law ensures that workers have the freedom to seek new jobs or start their own businesses, and helps ensure that businesses can freely compete to recruit the best employees.” 

OAG enforces DC laws protecting workers’ rights, including laws that ensure fair wages, overtime pay, and sick and safe leave. On October 1, 2022, a new DC law went into effect that makes it illegal for employers to impose non-compete agreements on most DC workers who earn less than $150,000 per year. Non-compete agreements are clauses in employment contracts that limit employees’ ability to work for competing businesses, or in some cases, start their own business. These agreements are harmful to workers because they limit worker mobility and depress worker wages. Non-compete clauses also make it harder to recruit workers, which can be harmful to businesses. 

Recognizing the significant impact that wage-theft has on workers, under DC law, employers who violate DC's ban on non-compete agreements may be required to pay harmed workers up to three times the amount of wages they lost as a result of the illegal conduct.

OAG’s Settlement with Accountable Healthcare Staffing, Inc.  
Accountable Healthcare Staffing is a Florida-based healthcare recruiting and staffing agency that does business in DC. An OAG investigation uncovered evidence that the company subjected 10 of its workers in the District to non-compete agreements in violation of the District’s ban on non-competes. Additionally, the company refused to let one worker out of a non-compete agreement even after she informed the company that the agreement violated the law—and as a result, this worker was unemployed for 90 days. Accountable Healthcare Staffing cooperated with OAG’s investigation and agreed to implement changes to its policies and procedures to ensure compliance with District law.  

As a result of OAG’s investigation, Accountable Healthcare Staffing must: 

• Pay $114,845 to workers: Ten workers who were required to sign illegal non-compete agreements will receive $1,000 each in compensation. The worker who was unemployed for 90 days as a result of the illegal non-compete agreement will receive an additional $104,845 in restitution for lost wages and damages based on the amount of wages the worker lost.
   
• Pay $10,000 in penalties to the District.
   
• Stop using non-compete agreements in DC: The company will stop using non-compete agreements for District employees and any of its out-of-state employees seeking employment in the District. It will also inform District employees who previously signed agreements that they will not be enforced.  

A copy of the settlement agreement is available here.  

OAG’s Settlement with SPiN DC, LLC
SPiN is a ping pong social club located in the District. After receiving a complaint from a District resident, OAG initiated an investigation into SPiN’s tipping practices and uncovered evidence that SPiN improperly required 3 of its managers to sign non-compete agreements in violation of the District’s ban on non-competes. SPiN cooperated with OAG’s investigation and will not enforce its non-compete agreements.

As a result of OAG’s investigation , SPiN must: 

• Pay $15,000 in penalties to the District.  
   
• Pay $3,000 to workers who signed illegal non-compete agreements: SPiN will pay $1,000 each to three workers who signed a non-compete after Oct. 1, 2022, the effective date of the District’s Ban on Non-Compete Agreements Act.

• Stop enforcing non-compete agreements in DC: SPiN will stop enforcing its non-compete agreements against all its District employees and any of its out-of-state employees seeking employment in the District. The company will also notify its District employees that these employees are no longer subject to non-compete agreements they previously signed.

A copy of the settlement agreement is available here. 
  
OAG’s Settlement with Hissho International, LLC
Hissho operates a franchising system for sushi bars and Asian hot food bars in 32 locations across the District, including in grocery stores and food courts. Through its investigation, OAG uncovered evidence that Hissho violated the District’s Antitrust Act and the District’s ban on non-compete agreements by including a “no-poach” clause in its contracts with franchisees, which prevented employees from leaving one fast food franchise to work for another franchise in the same chain. Hissho cooperated with OAG’s investigation and agreed to implement changes to its policies and procedures to ensure compliance with District law.

 As a result of OAG’s investigation, Hissho must: 

• Stop enforcing its no-poach clauses: Hissho must inform current District franchisees that it will not enforce no-poach language in its existing contracts with them and clarify that District franchisees may employ or seek to employ people working for other Hissho franchisees, and that employees of District franchisees may seek and obtain employment with any Hissho franchisee.  
   
• Stop including no-poach language in its contracts: Hissho must remove no-poach language when it amends or renews contracts with current District franchisees and must omit no-poach language from contracts with new District franchisees.

A copy of the settlement agreement is available here.  

The Accountable Healthcare Staffing and SPiN matters were handled by Assistant Attorney General Jude Nwaokobia and Workers’ Rights and Antifraud Section Chief Graham Lake. The Hissho matter was handled by Assistant Attorney General Will Margrabe, former Assistant Attorney General Arthur Durst, and Antitrust and Nonprofit Enforcement Section Chief Adam Gitlin.   

OAG’s Efforts to Protect Workers    
OAG’s Workers’ Rights and Antifraud Section is dedicated to fighting wage theft and protecting District workers. Its Antitrust and Nonprofit Enforcement Section protects workers from collusive practices that hold down wages. Since January 2023, OAG has secured more than $6 million for workers and the District. In total, since gaining wage theft enforcement authority, OAG has secured over $21 million by bringing investigations and lawsuits against employers who violate District law. OAG’s wage theft enforcement efforts have focused on industries with high populations of vulnerable workers, such as construction, restaurants and hospitality, healthcare, and the gig economy. OAG also released a report about how worker misclassification hurts workers, undercuts law-abiding businesses, and cheats taxpayers. Click here to view a more comprehensive list of OAG’s legal victories standing up for workers’ rights.  

How to Report Wage and Hour Violations 
Workers who believe that their rights have been violated, or that they have experienced wage theft or other wage and hour violations, can contact OAG by calling (202) 442-9828 or emailing workers@dc.gov or trabajadores@dc.gov.