Bill > HB07196

This bill establishes comprehensive restrictions on noncompete and exclusivity agreements in Connecticut, effective July 1, 2025. The legislation defines key terms and sets specific conditions under which such agreements can be used, primarily protecting workers with lower wages. For noncompete agreements to be enforceable, they must meet several strict requirements: they can only last up to one year (or two years with continued base salary compensation), must protect a legitimate business interest that cannot be reasonably protected through less restrictive means, and can only apply to workers earning at least three times the minimum wage for employees or five times the minimum wage for independent contractors. The bill prohibits noncompete agreements for workers below these wage thresholds and limits geographic and work-type restrictions. Additionally, the law requires employers to provide written notice of the agreement's terms, allow workers to consult legal counsel, and ensures the agreement does not unreasonably interfere with public interest. Workers who believe their rights have been violated can bring civil actions, and the Attorney General is empowered to investigate and take legal action against employers who systematically violate these provisions, with potential civil penalties up to $5,000 for each violation.

Justice, Labor and Employment

Labor and Public Employees Committee (J)

https://www.cga.ct.gov/asp/cgabillstatus/cgabillstatus.asp?selBillType=Bill&bill_num=HB07196&which_year=2025