District of Columbia — Termination

The District of Columbia follows the common-law at-will employment doctrine. Under this rule, employment is presumed to be terminable by either the employer or the employee at any time, for any lawful reason or no reason, unless a contract or statute provides otherwise or a public policy exception applies. The D.C. Court of Appeals has recognized that public policy exceptions to the at-will doctrine may apply in narrow circumstances specified by statute, regulation, or constitutional provision.

Source: Carl v. Children's Hosp., 702 A.2d 159, 163 (D.C. 1997)

District of Columbia law imposes different deadlines for final wage payment depending on whether the separation is employer-initiated (discharge) or employee-initiated (resignation or quit), with an additional carve-out for employees who handle the employer's money.

Involuntary termination (discharge)

When an employer discharges an employee, D.C. Code § 32-1303(1) requires the employer to pay all wages earned no later than the working day following the discharge. This is a hard one-business-day deadline; the statute does not permit deferral to the next regular payday.

Exception for employees responsible for employer funds

The statute recognizes that employees who handle cash, process deposits, or otherwise account for the employer's money may need their accounts reconciled before final payment. For these employees, the employer is allowed 4 days from the date of discharge or resignation to determine the accuracy of the employee's accounts, at the end of which time all wages earned must be paid. This 4-day window applies to both discharges and resignations when the employee is responsible for monies belonging to the employer.

Voluntary separation (resignation or quit)

When an employee quits or resigns—and does not have a written contract of employment for a period in excess of 30 days—the employer must pay wages due by whichever comes first:

• the next regular payday designated under D.C. Code § 32-1302, or
• 7 days from the date of quitting or resigning.

In practice, if the employer pays biweekly and the employee resigns 10 days before the next payday, the 7-day rule controls and the employer must pay within 7 days. If the employee resigns 3 days before the next payday, the next-payday rule controls.

Penalties for noncompliance

An employer who fails to pay wages as required under § 32-1303 is liable for liquidated damages equal to 10% of the unpaid wages for each working day the failure continues after the payment deadline, capped at an amount equal to treble the unpaid wages (three times the unpaid amount), whichever is smaller. This treble damages cap was established by D.C. Law 20-61, effective October 1, 2013. There is no longer any statutory provision that stops the penalty clock if the employer files for bankruptcy; the bankruptcy exception was repealed by D.C. Law 20-157, effective February 26, 2015.

Collective bargaining agreements

The statutory deadlines apply "[u]nless otherwise specified in a collective agreement between an employer and a bona fide union representing his employees." Unionized employers may negotiate different final-paycheck timelines in the CBA.

What counts as "wages"

D.C. Code § 32-1301(3) defines "wages" broadly to include all monetary compensation earned, including salary, commissions, bonuses, and the monetary value of fringe benefits. Under D.C. common law, accrued but unused vacation time is treated as earned wages and must be paid at separation unless an express written policy provides otherwise (NRA v. Ailes, 428 A.2d 816, 819 (D.C. 1981)). The D.C. Office of Wage-Hour FAQ confirms that employers must pay out accrued, unused vacation in the absence of an express agreement to the contrary.

Source: D.C. Code § 32-1303 Source: D.C. Law 20-157 History - DC Council Source: D.C. Code § 32-1301 Source: D.C. Office of Wage-Hour FAQs

No general advance notice for ordinary terminations

District of Columbia law does not require employers to provide advance notice to employees for ordinary terminations. D.C. is an at-will employment jurisdiction, meaning either party may terminate the employment relationship at any time, for any lawful reason, without advance notice unless an employment contract or collective bargaining agreement provides otherwise. There is no District statute mandating notice of termination for individual separations (other than requirements related to delivering the final paycheck, which are covered in the section on final payment timing). D.C. government guidance for both employers and employees states unambiguously that no notice is statutorily required for regular (non-mass) terminations. Source: DOES Wage-Hour Office Q&A (p. 12)

WARN Act applies to mass layoffs and plant closings

For larger reductions-in-force, the federal Worker Adjustment and Retraining Notification Act (WARN Act) applies in D.C. just as it does in the states. Covered employers—those with 100 or more full-time employees—must provide at least 60 days’ written notice to affected employees (and the D.C. government) before a “plant closing” (50 or more employees at a single site) or a “mass layoff” (50+ employees and at least 33% of the workforce at a single site) can take effect. D.C. does not have a “mini-WARN” overlay or modification. Exceptions to the federal WARN notice requirement exist for unforeseeable business circumstances, faltering companies, and natural disasters. For details on the federal trigger and application, see Federal — Termination.

Source: DOES Rapid Response Services Source: WARN Act Summary, U.S. DOL

District of Columbia law requires employers to include all earned and unpaid “wages” in the final paycheck, with “wages” specifically defined to cover more than just hourly or salary pay.

Statutory scope of “wages” in D.C. D.C. Code § 32-1301(3) defines wages to include “all monetary compensation after lawful deductions, whether measured by time, task, piece, commission, or other basis of calculation.” The term is intended to be read expansively. This means that:

• Commissions: Earned but unpaid commissions must be included in the final paycheck if the right to payment is triggered (i.e., the employee has fulfilled all terms required to earn the commission before separation). Pending commissions that are conditional or not yet earned at the date of termination are not required to be paid until earned under the terms of the commission agreement.
• Bonuses: Bonuses that are earned and vested as of the date of separation, whether performance-based or contractual, count as “wages” and must also be included in the final paycheck. Discretionary, non-guaranteed bonuses that have not been promised or earned are generally not required to be paid, but all “promised” bonuses are.
• Expense reimbursements: DC law does not treat routine business expense reimbursements as “wages.” As confirmed in DOES wage-claim instructions, expense reimbursement disputes are not processed through the D.C. wage payment statute and are not required to be included in the statutory final paycheck (though employers may still have a contractual obligation outside the wage law).

Employers should review commission and bonus agreements carefully, as the question of whether an item is “earned” or “promised” depends on the terms of the plan, not just the timing of payroll.

Source: D.C. Code § 32-1301(3) Source: DOES Wage-Hour Laws Guide, p. 4 Source: DOES Wage Claim Filing Instructions

District of Columbia broadly bans non‑compete provisions for covered employees (those earning below the threshold defined in D.C. Code § 32‑581.01(2)). Under D.C. Code § 32‑581.02, any non‑compete clause or policy that an employer requires or requests a covered employee to sign, entered into on or after October 1, 2022, is void as a matter of law and unenforceable. Retaliation—including threats for refusing, asking about, or failing to comply with such provisions—is prohibited.

However, highly compensated employees—non‑medical workers earning above the annually adjusted threshold (in 2025: $158,363; for medical specialists: $263,939, and only if licensed and primarily engaged in direct patient care per § 32‑581.01(4))—may be subject to enforceable non‑competes if the employer meets strict requirements under § 32‑581.03. An enforceable non‑compete for a highly compensated employee must:

• specify the functional scope (roles, services, or industries restricted),
• specify the geographic limitations, and
• limit the duration to 365 calendar days post‑employment (or 730 days for medical specialists). The agreement must be provided in writing at least 14 days before employment begins—or, for existing employees, 14 days before execution (§ 32‑581.03(e)).

The annual thresholds are indexed each January 1 to the prior year’s CPI‑U in the Washington metro area. As of January 1, 2025, the thresholds are $158,363 and $263,939. Employers may not retaliate against highly compensated employees for requesting or objecting to non‑compete terms.

This statutory structure applies only to post‑October 1, 2022 agreements. Pre‑existing non‑competes are not invalidated, unless otherwise prohibited under other legal doctrines.

In practice: after termination, covered employees face no enforceable non‑compete restrictions. Highly compensated employees may—and only then if the employer satisfied the notice, scope, geographic, and duration conditions—be lawfully bound by a post‑termination non‑compete within those statutory limits. Source: D.C. Code § 32-581.02 Source: D.C. Law 24-175 Source: DOES 2025 Ban on Non-Compete Clauses Guidance