CT HB06913

Employers may only obtain noncompete covenants from employees earning more than twice the state minimum fair wage, and such covenants cannot restrict employment for more than one year unless part of an employment or separation agreement with continued compensation.

Noncompete covenants entered on or after July 1, 2019, are unenforceable if the employer terminates employment, the employee terminates for good cause, or the agreement expires without a bona fide renewal offer (except for business sale or ownership agreements).

Covenants lasting 1-2 years are permitted if the employer continues paying the employee's base salary and benefits for at least one year following termination.

All noncompete covenants entered on or after July 1, 2019, must be provided to employees at least 10 business days before signing, expressly state the employee's right to consult counsel, and be signed by both parties.

The party seeking to enforce a noncompete covenant bears the burden of proof, and if the covenant is void, remaining contract provisions remain enforceable.