Connecticut 2021 Regular Session

Connecticut Senate Bill SB00906 Compare Versions

Version 1 (Old)

Version 2 (New)

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4		-	SB.docx
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	3	+	LCO No. 3466 1 of 8
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7		-	General Assembly ~~Substitute~~ Bill No. 906
	5	+	General Assembly Raised Bill No. 906
8	6		January Session, 2021
	7	+	LCO No. 3466
	8	+
	9	+
	10	+	Referred to Committee on LABOR AND PUBLIC EMPLOYEES
	11	+
	12	+
	13	+	Introduced by:
	14	+	(LAB)
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12	18
13		-
14		-	AN ACT CONCERNING NO NCOMPETE AGREEMENTS.
	19	+	AN ACT CONCERNING NO N-COMPETE AGREEMENTS .
15	20		Be it enacted by the Senate and House of Representatives in General
16	21		Assembly convened:
17	22
18	23		Section 1. (NEW) (Effective July 1, 2021) For purposes of sections 1 to 1
19	24		4, inclusive, of this act: 2
20	25		(1) "Base salary and benefits" means (A) wages, as defined in section 3
21	26		31-71a of the general statutes, earned over the course of the prior 4
22	27		calendar year, without consideration of any overtime or bonus 5
23	28		compensation, and (B) health insurance benefits and other fringe 6
24	29		benefits received by an employee over the course of the prior calendar 7
25	30		year; 8
26	31		(2) "Covenant not to compete" means a contract, provision or 9
27	32		agreement entered into, amended, extended or renewed on or after July 10
28	33		1, 2021, that restrains a worker from, or imposes penalties on a worker 11
29	34		for, engaging in any lawful profession, occupation, trade, calling or 12
30	35		business of any kind in any geographic area of the state for any period 13
31	36		of time after separation from employment, but does not mean (A) a 14
32		-	nonsolicitation agreement, provided such agreement (i) does not restrict 15
33		-	a worker's activities for more than one year, and (ii) is no more 16
34		-	restrictive than necessary in duration, geographic scope, type of work 17
35		-	and type of employer, (B) a nondisclosure or confidentiality agreement, 18 Substitute Bill No. 906
	37	+	nonsolicitation agreement, (B) a nondisclosure or confidentiality 15 Raised Bill No. 906
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42		-	(C) a contract, provision or agreement in which an employee agrees not 19
43		-	to reapply for employment with an employer after being terminated by 20
44		-	such employer, (D) any covenant not to compete, as defined in section 21
45		-	20-14p or 20-681 of the general statutes or as described in section 31-50b 22
46		-	of the general statutes, or (E) any contract, provision or agreement made 23
47		-	(i) in anticipation of a sale of the goodwill of a business or all of the 24
48		-	seller's ownership interest in a business, or (ii) as part of a partnership 25
49		-	or ownership agreement; 26
50		-	(3) "Employee" means any individual employed or permitted to work 27
51		-	by an employer; 28
52		-	(4) "Employer" has the same meaning as provided in section 31-71a 29
53		-	of the general statutes; 30
54		-	(5) "Exclusivity agreement" means a contract, provision or agreement 31
55		-	entered into, amended, extended or renewed on or after July 1, 2021, 32
56		-	that restrains a worker from, or imposes penalties on a worker for, 33
57		-	having an additional job, supplementing the worker's income by 34
58		-	working for another employer, working as an independent contractor 35
59		-	or being self-employed; 36
60		-	(6) "Exempt employee" means an employee not included in the 37
61		-	definition of "employee" in section 31-58 of the general statutes; 38
62		-	(7) "Legitimate business interest" means an interest in the protection 39
63		-	of trade secrets or confidential information that does not qualify as a 40
64		-	trade secret, or an interest in preserving established goodwill with the 41
65		-	employer's customers; 42
66		-	(8) "Monetary compensation" means (A) wages, as defined in section 43
67		-	31-71a of the general statutes, earned over the course of the prior 44
68		-	calendar year or portion thereof, for which the employee was employed, 45
69		-	annualized based on the period of employment and calculated as of the 46
70		-	earlier of the date enforcement of the covenant not to compete is sought 47
71		-	or the date of separation from employment, and (B) payments made to 48
72		-	independent contractors based on services rendered, annualized based 49 Substitute Bill No. 906
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	42	+
	43	+	agreement, or (C) a contract, provision or agreement in which an 16
	44	+	employee agrees not to reapply for employment with an employer after 17
	45	+	being terminated by such employer; 18
	46	+	(3) "Covenant not to compete predicated on ownership interest" 19
	47	+	means a covenant not to compete made (A) in anticipation of a sale of 20
	48	+	the goodwill of a business or all of the seller's ownership interest in a 21
	49	+	business, or (B) as part of a partnership or ownership agreement and 22
	50	+	such contract or agreement expires and is not renewed, unless, prior to 23
	51	+	such expiration, the employer makes a bona fide offer to renew the 24
	52	+	contract on the same or similar terms and conditions; 25
	53	+	(4) "Employee" means any individual employed or permitted to work 26
	54	+	by an employer; 27
	55	+	(5) "Employer" has the same meaning as provided in section 31-71a 28
	56	+	of the general statutes; 29
	57	+	(6) "Exclusivity agreement" means a contract, provision or agreement 30
	58	+	entered into, amended, extended or renewed on or after July 1, 2021, 31
	59	+	that restrains a worker from, or imposes penalties on a worker for, 32
	60	+	having an additional job, supplementing their income by working for 33
	61	+	another employer, working as an independent contractor or being self-34
	62	+	employed; 35
	63	+	(7) "Exempt employee" means an employee not included in the 36
	64	+	definition of "employee" in section 31-58 of the general statutes; 37
	65	+	(8) "Franchisee" has the same meaning as provided in section 42-133e 38
	66	+	of the general statutes; 39
	67	+	(9) "Franchisor" has the same meaning as provided in section 42-133e 40
	68	+	of the general statutes; 41
	69	+	(10) "Legitimate business interest" means an interest in the protection 42
	70	+	of trade secrets, or confidential information that does not qualify as a 43
	71	+	trade secret, or an interest in preventing solicitation of the employer's 44
	72	+	customers; 45 Raised Bill No. 906
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79		-	on the period during which the independent contractor provided 50
80		-	services and calculated as of the earlier of the date enforcement of the 51
81		-	covenant not to compete is sought or the date of separation from 52
82		-	employment; 53
83		-	(9) "Nonsolicitation agreement" means (A) a contract, provision or 54
84		-	agreement between an employer and employee that prohibits 55
85		-	solicitation by an employee, upon termination of employment, of (i) any 56
86		-	employee of the employer to leave the employer, or (ii) any customer of 57
87		-	the employer to cease or reduce the extent to which it is doing business 58
88		-	with the employer, or (B) a contract, provision or agreement between an 59
89		-	employer and any customer thereof that prohibits solicitation by the 60
90		-	customer of an employee of the employer to cease or reduce the extent 61
91		-	to which it is doing business with the employer; 62
92		-	(10) "Separation from employment" means any event in which an 63
93		-	employment or independent contractor relationship ends; and 64
94		-	(11) "Worker" means an employee or an independent contractor. 65
95		-	Sec. 2. (NEW) (Effective July 1, 2021) (a) No employer or contractor 66
96		-	may request or require a worker to sign or agree to a covenant not to 67
97		-	compete and any such covenant not to compete shall not be enforceable 68
98		-	against such worker unless all of the following conditions are met: (1) 69
99		-	Such covenant does not restrict the worker's competitive activities for a 70
100		-	period of more than one year following the termination or separation of 71
101		-	the employee; (2) such covenant is necessary to protect a legitimate 72
102		-	business interest of the employer and such business interest could not 73
103		-	reasonably be protected by less restrictive means, including, but not 74
104		-	limited to, a nondisclosure agreement, nonsolicitation agreement, or 75
105		-	reliance on the protections provided by the provisions of chapter 625 of 76
106		-	the general statutes; (3) such covenant is no more restrictive than 77
107		-	necessary to protect such business interest in terms of the covenant's 78
108		-	duration, geographic scope, type of work and type of employer; (4) such 79
109		-	worker is an exempt employee; (5) the written text of such covenant is 80
110		-	provided to the worker not later than ten business days prior to the 81 Substitute Bill No. 906
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	77	+
	78	+	(11) "Monetary compensation" means (A) wages, as defined in section 46
	79	+	31-71a of the general statutes, earned over the course of the prior year, 47
	80	+	or portion thereof for which the employee was employed, annualized 48
	81	+	based on the period of employment and calculated as of the earlier of 49
	82	+	the date enforcement of the covenant not to compete is sought or the 50
	83	+	date of separation from employment, and (B) payments made to 51
	84	+	independent contractors based on services rendered, annualized based 52
	85	+	on the period during which the independent contractor provided 53
	86	+	services and calculated as of the earlier of the date enforcement of the 54
	87	+	covenant not to compete is sought or the date of separation from 55
	88	+	employment; 56
	89	+	(12) "Nonsolicitation agreement" means (A) a contract, provision or 57
	90	+	agreement between an employer and employee that prohibits 58
	91	+	solicitation by an employee, upon termination of employment of (i) any 59
	92	+	employee of the employer to leave the employer, or (ii) of any customer 60
	93	+	of the employer, to cease or reduce the extent to which it is doing 61
	94	+	business with the employer, or (B) a contract, provision or agreement 62
	95	+	between an employer and any customer thereof that prohibits 63
	96	+	solicitation by the customer of an employee of the employer to cease or 64
	97	+	reduce the extent to which it is doing business with the employer; 65
	98	+	(13) "Separation agreement" means an agreement accompanying the 66
	99	+	termination or separation of employment without cause in which the 67
	100	+	employee releases claims or potential claims against the employer; 68
	101	+	(14) "Separation from employment" means any event at which an 69
	102	+	employment or independent contractor relationship ends; and 70
	103	+	(15) "Worker" means an employee or an independent contractor. 71
	104	+	Sec. 2. (NEW) (Effective July 1, 2021) (a) No employer or contractor 72
	105	+	may request or require a worker to sign or agree to a covenant not to 73
	106	+	compete, and any such covenant not to compete shall not be enforceable 74
	107	+	against such worker, unless all of the following conditions are met: (1) 75
	108	+	Such covenant does not restrict the worker's competitive activities for a 76
	109	+	period of more than one year following the termination or separation of 77 Raised Bill No. 906
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117		-	earlier of (A) the worker's deadline to accept an offer from the employer 82
118		-	or the contractor for employment or to enter into an independent 83
119		-	contractor relationship, or (B) the date such covenant is signed; (6) such 84
120		-	covenant contains a statement of the worker's rights regarding 85
121		-	covenants not to compete, including that (A) not all covenants not to 86
122		-	compete are enforceable, (B) covenants not to compete for workers 87
123		-	earning less than the threshold provided in subsection (b) of this section 88
124		-	are illegal, (C) the worker may contact the Attorney General if the 89
125		-	worker is subject to an illegal covenant not to compete, and (D) the 90
126		-	worker has the right to consult with counsel prior to signing the 91
127		-	covenant not to compete; (7) such covenant is signed by the worker and 92
128		-	the employer or contractor separately from any other agreement 93
129		-	underlying the relationship between the worker and the employer or 94
130		-	contractor; (8) if such covenant is added to an existing employment or 95
131		-	independent contractor relationship, it is supported by sufficient 96
132		-	consideration independent from continuation of the employment or 97
133		-	contractor relationship; (9) the employment or contractual relationship 98
134		-	was not terminated by the worker for good cause attributable to the 99
135		-	employer or contractor; (10) such covenant does not require the worker 100
136		-	to submit to adjudication in a forum outside of this state or otherwise 101
137		-	purport to deprive the worker of the protections or benefits of this 102
138		-	section; and (11) such covenant does not unreasonably interfere with the 103
139		-	public's interests and is consistent with the provisions of this section, 104
140		-	other laws of this state and public policy. 105
141		-	(b) No employer or contractor may request or require a worker to 106
142		-	sign or agree to a covenant not to compete, and any such covenant not 107
143		-	to compete shall be unenforceable against such worker, if such worker 108
144		-	is an employee earning monetary compensation of less than three times 109
145		-	the minimum fair wage, as defined in section 31-58 of the general 110
146		-	statutes, or such worker is an independent contractor earning monetary 111
147		-	compensation of less than five times said minimum fair wage. 112
148		-	(c) A covenant not to compete that applies to geographic areas in 113
149		-	which a worker neither provided services nor had a material presence 114 Substitute Bill No. 906
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	114	+
	115	+	the employee; (2) such covenant is necessary to protect a legitimate 78
	116	+	business interest of the employer, and such business interest could not 79
	117	+	reasonably be protected via less restrictive means, including, but not 80
	118	+	limited to, a nondisclosure agreement, nonsolicitation agreement, or 81
	119	+	reliance on the protections provided by the provisions of chapter 625 of 82
	120	+	the general statutes; (3) such covenant is no more restrictive than 83
	121	+	necessary to protect such business interest in terms of the covenant's 84
	122	+	duration, geographic scope, type of work and type of employer; (4) such 85
	123	+	worker is an exempt employee earning monetary compensation of more 86
	124	+	than three times the minimum fair wage as defined in section 31-58 of 87
	125	+	the general statutes, or such worker is an independent contractor 88
	126	+	earning monetary compensation of more than five times said minimum 89
	127	+	fair wage; and (5) the written text of such covenant is provided to the 90
	128	+	worker no later than ten business days prior to the earlier of (A) the 91
	129	+	deadline for acceptance of the offer of employment or the offer to enter 92
	130	+	into an independent contractor relationship, or (B) the date of signing of 93
	131	+	such covenant; (6) such covenant expressly states that the worker has 94
	132	+	the right to consult with counsel prior to signing; (7) such covenant is 95
	133	+	signed by the worker and the employer or contractor separately from 96
	134	+	any other agreement underlying the relationship; (8) if such covenant is 97
	135	+	added to an existing employment or independent contractor 98
	136	+	relationship, it is supported by sufficient consideration independent 99
	137	+	from continuation of the employment or contractor relationship; (9) 100
	138	+	such covenant does not require the worker to submit to adjudication in 101
	139	+	a forum outside of Connecticut, or otherwise purport to deprive the 102
	140	+	worker of the protections or benefits of this section; and (10) such 103
	141	+	covenant does not unreasonably interfere with the public's interests and 104
	142	+	is consistent with this section, other laws of this state and public policy. 105
	143	+	(b) Even if otherwise valid under this section, a covenant not to 106
	144	+	compete that applies to geographic areas in which an employee neither 107
	145	+	provided services nor had a material presence or influence within the 108
	146	+	last two years of employment, or that applies to types of work that the 109
	147	+	employee did not perform during the last two years of employment, 110
	148	+	shall be presumed entirely unenforceable. 111 Raised Bill No. 906
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156		-	or influence within the last two years of employment, or that applies to 115
157		-	types of work that the worker did not perform during the last two years 116
158		-	of employment, shall be presumed entirely unenforceable. 117
159		-	(d) Notwithstanding the provisions of subdivision (1) of subsection 118
160		-	(a) of this section, a covenant not to compete shall be permitted and 119
161		-	enforceable for a period of no longer than two years following 120
162		-	separation from employment if such covenant is a part of an agreement 121
163		-	under which the worker is compensated with the worker's base salary 122
164		-	and benefits, minus any outside compensation, for the entire period of 123
165		-	such covenant. 124
166		-	Sec. 3. (NEW) (Effective July 1, 2021) (a) No employer or contractor 125
167		-	may request or require a worker to sign or agree to an exclusivity 126
168		-	agreement, unless (1) the worker is an exempt employee earning 127
169		-	monetary compensation of more than three times the minimum fair 128
170		-	wage, as defined in section 31-58 of the general statutes, or (2) the 129
171		-	worker is an independent contractor earning monetary compensation of 130
172		-	more than five times said minimum fair wage. 131
173		-	(b) An exclusivity agreement may be permitted if a worker having an 132
174		-	additional job, supplementing his or her income by working for another 133
175		-	employer, working as an independent contractor or being self-134
176		-	employed would: (1) Imperil the safety of the worker, the worker's 135
177		-	coworkers or the public; or (2) substantially interfere with the 136
178		-	reasonable and normal scheduling expectations of the employer or 137
179		-	contractor, provided on-call shift scheduling shall not be considered a 138
180		-	reasonable scheduling expectation for the purposes of this subdivision. 139
181		-	(c) The provisions of this section shall not be construed to alter any 140
182		-	obligations of an employee to an employer under existing law, 141
183		-	including, but not limited to, the common law duty of loyalty and laws 142
184		-	preventing conflicts of interest and any corresponding policies 143
185		-	addressing such obligations. 144
186		-	Sec. 4. (NEW) (Effective July 1, 2021) (a) The party seeking to enforce 145 Substitute Bill No. 906
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	153	+
	154	+	(c) Notwithstanding the provisions of subdivision (1) of subsection 112
	155	+	(a) of this section, a covenant not to compete shall be permitted and 113
	156	+	enforceable for a period no longer than two years following separation 114
	157	+	from employment if such covenant is a part of an agreement under 115
	158	+	which the worker is compensated with the worker's base salary and 116
	159	+	benefits, minus any outside compensation, for the entire period of such 117
	160	+	covenant. 118
	161	+	(d) Notwithstanding the provisions of subsection (a) of this section, a 119
	162	+	covenant not to compete predicated on ownership interest shall be 120
	163	+	permitted and enforceable unless (1) the employment or contractual 121
	164	+	relationship is terminated by the employer or contractor; or (2) the 122
	165	+	employment or contractual relationship is terminated by the worker for 123
	166	+	good cause attributable to the employer or contractor. 124
	167	+	(e) This section shall not apply to any covenant not to compete as 125
	168	+	defined in section 20-14p, 20-681, or 31-50b of the general statutes. 126
	169	+	Sec. 3. (NEW) (Effective July 1, 2021) (a) No employer or contractor 127
	170	+	may request or require a worker to sign or agree to an exclusivity 128
	171	+	agreement unless the worker is an exempt employee earning monetary 129
	172	+	compensation of more than three times the minimum fair wage as 130
	173	+	defined in section 31-58 of the general statutes, or the worker is an 131
	174	+	independent contractor earning monetary compensation of more than 132
	175	+	five times said minimum fair wage. 133
	176	+	(b) This section shall not apply when the worker's having an 134
	177	+	additional job, supplementing their income by working for another 135
	178	+	employer, working as an independent contractor, or being self-136
	179	+	employed would: (1) Imperil the safety of the worker, the worker's 137
	180	+	coworkers or the public; or (2) substantially interfere with the 138
	181	+	reasonable and normal scheduling expectations of the employer or 139
	182	+	contractor. 140
	183	+	(c) This section shall not be construed to alter any obligations of an 141
	184	+	employee to an employer under existing law, including, but not limited 142
	185	+	to, the common law duty of loyalty and laws preventing conflicts of 143 Raised Bill No. 906
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	191	+	interest and any corresponding policies addressing such obligations. 144
	192	+	Sec. 4. (NEW) (Effective July 1, 2021) (a) The party seeking to enforce 145
193	193		a covenant not to compete or an exclusivity agreement against a worker 146
194	194		shall have the burden of proof in any enforcement proceeding. The 147
195	195		party required to continue to compensate an employee or independent 148
196		-	contractor in an agreement under subsection (d) of section 2 of this act 149
	196	+	contractor in an agreement under subsection (c) of section 2 of this act 149
197	197		shall have the burden of proof in any proceeding to enforce such 150
198	198		requirement to continue to compensate such employee or independent 151
199	199		contractor. 152
200		-	(b) No court shall judicially modify a covenant not to compete that 153
201		-	violates the provisions of sections 1 to 3, inclusive, of this act, in order 154
202		-	to partially enforce such covenant. 155
203		-	(c) Any severable provisions of any contract or agreement that 156
204		-	includes a covenant not to compete or an exclusivity agreement that is 157
205		-	held unenforceable under the provisions of sections 1 to 3, inclusive, of 158
206		-	this act, shall remain in full force and effect, including, but not limited 159
207		-	to, any provisions that require the payment of damages resulting from 160
208		-	any injury suffered by reason of termination or separation of 161
209		-	employment. 162
210		-	(d) The Attorney General, on behalf of a worker or workers, or any 163
211		-	worker aggrieved by a violation of any provision of sections 1 to 3, 164
212		-	inclusive, of this act, may bring a civil action in the Superior Court for 165
213		-	any and all relief provided in this section. 166
214		-	(e) If a court or an arbitrator determines that a covenant not to 167
215		-	compete or an exclusivity agreement violates any provision of sections 168
216		-	1 to 3, inclusive, of this act, the violator shall be liable for the greater of 169
217		-	the aggrieved worker's actual damages or a penalty of five thousand 170
218		-	dollars, in addition to reasonable attorney's fees, expenses and court 171
219		-	costs. 172
220		-	(f) Notwithstanding section 31-69a of the general statutes, no 173
221		-	employer, officer, agent or other person who violates any provision of 174
222		-	this section shall be liable to the Labor Department for a civil penalty. 175
223		-	Sec. 5. Section 31-50a of the general statutes is repealed and the 176 Substitute Bill No. 906
	200	+	(b) The provisions of any contract or agreement constituting a 153
	201	+	covenant not to compete or exclusivity agreement may be held partially 154
	202	+	enforceable only to the extent that such provisions constitute a 155
	203	+	combination of several distinct covenants. A covenant intended by the 156
	204	+	parties to be an entirety may only be held fully enforceable or 157
	205	+	unenforceable. 158
	206	+	(c) Any severable provisions of any contract or agreement that 159
	207	+	includes a covenant not to compete or an exclusivity agreement that is 160
	208	+	held unenforceable under the provisions of sections 1 to 3, inclusive, of 161
	209	+	this act shall remain in full force and effect, including, but not limited 162
	210	+	to, any provisions that require the payment of damages resulting from 163
	211	+	any injury suffered by reason of termination or separation of 164
	212	+	employment. 165
	213	+	(d) The Attorney General, on behalf of a worker or workers, or any 166
	214	+	worker aggrieved by a violation of this section may bring a civil action 167
	215	+	in the Superior Court for any and all relief provided in this section. In 168
	216	+	such actions, the plaintiff shall carry the burden of proof by a 169
	217	+	preponderance of the evidence. 170
	218	+	(e) If a court or arbitrator determines that a covenant not to compete 171
	219	+	or an exclusivity agreement violates this section, the violator is liable for 172
	220	+	the greater of the aggrieved worker's actual damages or a statutory 173
	221	+	penalty of five thousand dollars, in addition to reasonable attorney's 174
	222	+	fees, expenses and court costs. 175 Raised Bill No. 906
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230		-	following is substituted in lieu thereof (Effective July 1, 2021): 177
231		-	(a) No employer may require any person employed in the 178
232		-	classification 339032 of the standard occupational classification system 179
233		-	of the Bureau of Labor Statistics of the United States Department of 180
234		-	Labor to enter into an agreement prohibiting such person from engaging 181
235		-	in the same or a similar job, at the same location at which the employer 182
236		-	employs such person, for another employer or as a self-employed 183
237		-	person, unless the employer proves that such person has obtained trade 184
238		-	secrets, as defined in subsection (d) of section 35-51, of the employer. 185
239		-	(b) (1) Any person who is aggrieved by a violation of this section may 186
240		-	bring a civil action in the Superior Court to recover damages and for 187
241		-	such injunctive and equitable relief as the court deems appropriate. 188
242		-	(2) The Labor Commissioner may request the Attorney General to 189
243		-	bring an action in the superior court for the judicial district of Hartford 190
244		-	for restitution on behalf of any person injured by any violation of this 191
245		-	section and for such injunctive or equitable relief as the court deems 192
246		-	appropriate. 193
247		-	(c) The provisions of this section shall apply to agreements entered 194
248		-	into, renewed or extended on or after October 1, 2007, and before July 1, 195
249		-	2021. 196
	226	+	LCO No. 3466 7 of 8
	227	+
	228	+	(f) Notwithstanding section 31-69a of the general statutes, no 176
	229	+	employer, officer, agent or other person who violates any provision of 177
	230	+	this section shall be liable to the Labor Department for a civil penalty. 178
	231	+	Sec. 5. Section 31-50a of the general statutes is repealed and the 179
	232	+	following is substituted in lieu thereof (Effective July 1, 2021): 180
	233	+	(a) No employer may require any person employed in the 181
	234	+	classification 339032 of the standard occupational classification system 182
	235	+	of the Bureau of Labor Statistics of the United States Department of 183
	236	+	Labor to enter into an agreement prohibiting such person from engaging 184
	237	+	in the same or a similar job, at the same location at which the employer 185
	238	+	employs such person, for another employer or as a self-employed 186
	239	+	person, unless the employer proves that such person has obtained trade 187
	240	+	secrets, as defined in subsection (d) of section 35-51, of the employer. 188
	241	+	(b) (1) Any person who is aggrieved by a violation of this section may 189
	242	+	bring a civil action in the Superior Court to recover damages and for 190
	243	+	such injunctive and equitable relief as the court deems appropriate. 191
	244	+	(2) The Labor Commissioner may request the Attorney General to 192
	245	+	bring an action in the superior court for the judicial district of Hartford 193
	246	+	for restitution on behalf of any person injured by any violation of this 194
	247	+	section and for such injunctive or equitable relief as the court deems 195
	248	+	appropriate. 196
	249	+	(c) The provisions of this section shall apply to agreements entered 197
	250	+	into, renewed or extended on or after October 1, 2007, and before July 1, 198
	251	+	2021. 199
250	252		This act shall take effect as follows and shall amend the following
251	253		sections:
252	254
253	255		Section 1 July 1, 2021 New section
254	256		Sec. 2 July 1, 2021 New section
255	257		Sec. 3 July 1, 2021 New section
256	258		Sec. 4 July 1, 2021 New section
257		-	Sec. 5 July 1, 2021 31-50a
258		-
259		-	Statement of Legislative Commissioners:
260		-	In Section 1(3), "20-14p, 20-681 or 31-50b" was changed to 20-14p or 20-
261		-	681 of the general statutes or as described in section 31-50b" for accuracy
262		-	and consistency with standard drafting conventions; in Section 1(5), Substitute Bill No. 906
	259	+	Sec. 5 July 1, 2021 31-50a Raised Bill No. 906
263	260
264	261
265		-	LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00906-
266		-	R01-SB.docx }
267		-	8 of 8
268	262
269		-	"their" was changed to "the worker's" for clarity and consistency with
270		-	standard drafting conventions; in Section 1(8), "calendar" was added
271		-	before "year" for clarity; in Section 1(10) "at" was changed to "in" for
272		-	clarity and accuracy; in Section 2(a)(2), "nondisclosure agreement,
273		-	nonsolicitation agreement" was changed to "nondisclosure or
274		-	nonsolicitation agreement" for conciseness; Section 2(a)(5) was rewritten
275		-	for clarity; in Section 2(a)(6)(B), "in subdivision (4) of this subsection"
276		-	was changed to "provided in subsection (b) of this section" for accuracy;
277		-	in Section 2(a)(7), "between the worker and the employer or contractor"
278		-	was added after "relationship" for clarity; in Section 2(a)(10),
279		-	"Connecticut" was changed to "this state" for consistency with standard
280		-	drafting conventions; in Section 2(a)(11), "the provisions of" was
281		-	inserted before "this" for clarity; in Section 2(b), "Even if otherwise valid
282		-	under the provisions of this section" was deleted for consistency with
283		-	standard drafting conventions and "not be enforceable" was changed to
284		-	"be unenforceable" for clarity; in Section 2(c), "Even if otherwise valid
285		-	under this section" was deleted for consistency with standard drafting
286		-	conventions; Section 3(a) was divided into Subdivs. for clarity; in
287		-	Section 3(b), "This section shall not apply when" was changed to "An
288		-	exclusivity agreement may be permitted if" for clarity; in Section 3(c),
289		-	"The provisions of" was added before "This section" for accuracy and
290		-	consistency with standard drafting conventions; in Section 4(a),
291		-	"subsection (c)" was changed to "subsection (d)" for accuracy; in Section
292		-	4(e), "statutory" was deleted for consistency with standard drafting
293		-	conventions.
	263	+	LCO No. 3466 8 of 8
294	264
295		-	LAB Joint Favorable Subst.
	265	+
	266	+	Statement of Purpose:
	267	+	To set certain requirements for covenants not to compete.
	268	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
	269	+	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
	270	+	underlined.]
296	271