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CT SB00906

Bill

Status

Introduced

2/18/2021

Primary Sponsor

Labor and Public Employees Committee

Click for details

Origin

Senate

2021 General Assembly

AI Summary

  • Effective July 1, 2021, employers may not enforce noncompete agreements unless the worker is an exempt employee and the agreement meets 11 specific conditions, including a maximum one-year duration and written notice at least 10 business days before signing.

  • Noncompete agreements are unenforceable against employees earning less than three times the minimum fair wage or independent contractors earning less than five times the minimum fair wage.

  • Covenants lasting up to two years are permitted if the worker receives full base salary and benefits minus outside compensation for the entire restriction period.

  • Exclusivity agreements restricting workers from having additional jobs are prohibited unless the worker is an exempt employee earning more than three times minimum wage (or independent contractor earning more than five times), and only if a second job would imperil safety or substantially interfere with scheduling.

  • Violators face liability for the greater of actual damages or $5,000 in penalties, plus reasonable attorney's fees and court costs; the Attorney General may bring civil actions on behalf of aggrieved workers.

Legislative Description

An Act Concerning Noncompete Agreements.

Last Action

Referred by Senate to Committee on Judiciary

4/28/2021

Committee Referrals

Judiciary4/28/2021
Labor and Public Employees2/18/2021

Full Bill Text

No bill text available