Connecticut House Bill HB07038

Connecticut 2019 Regular Session

• Introduced: 1/31/19
• Refer: 1/31/19

Caption

An Act Concerning Statutory Standards For Reasonable Noncompete Agreements.

Impact

If enacted, this bill would significantly amend existing statutes concerning employment contracts in the state. It would require employers to comply with new standards that could alter how noncompete agreements are drafted and executed. By introducing such transparency and fairness in the process, the bill seeks to reduce unfair practices that can restrict an employee's ability to find work after leaving a job, thereby promoting a more equitable job market.

Summary

House Bill 07038 aims to establish statutory standards for reasonable noncompete agreements in the state. The bill stipulates that for a noncompete agreement to be valid, it must be written, signed by both the employer and employee, and include a clause informing the employee of their right to consult with legal counsel. Furthermore, the bill mandates that employers provide timely notice of such agreements to employees, with specific timelines depending on whether the agreement is presented before or during employment. This structured approach is intended to protect employees' rights while holding employers accountable to clear practices regarding noncompete clauses.

Contention

Noteworthy points of contention include the potential pushback from businesses that rely heavily on noncompete agreements to protect their proprietary information and competitive advantage. Critics may argue that such measures could hinder companies' ability to safeguard their interests or diminish their leverage in hiring and retaining talent. Conversely, advocates assert that these changes are essential to fostering a fair work environment and preventing undue restriction on employees' career mobility.