CT HB07196

Noncompete agreements are void and unenforceable against employees earning less than 3 times minimum wage or independent contractors earning less than 5 times minimum wage, effective July 1, 2025.

Enforceable noncompetes are limited to 1 year post-employment (or 2 years if the employer pays the worker's base salary and benefits during the restriction period) and must protect a legitimate business interest that cannot be addressed through less restrictive means.

Employers must provide workers with a written copy of the noncompete at least 10 business days before signing, including a statement of worker rights, and the agreement must be signed separately from the employment contract.

Exclusivity agreements prohibiting workers from holding second jobs or freelancing are banned for employees earning less than 3 times minimum wage and independent contractors earning less than 5 times minimum wage.

Workers may bring civil actions to recover damages and attorney's fees, with civil penalties up to $5,000 per violation; the Attorney General may investigate patterns of violations and bring enforcement actions on behalf of the state.