OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sHB-6594
AN ACT CONCERNING NONCOMPETE AGREEMENTS.
Primary Analyst: CW 3/3/23
Contributing Analyst(s): LG, WL, BP, MR
Reviewer: MM
OFA Fiscal Note
State Impact: None
Municipal Impact: None
Explanation
The bill, which sets limits on the use of "covenant not to compete"
provisions in employment contracts, does not result in any fiscal impact
to the state or municipalities.
1
The bill allows the attorney general to bring a civil action in Superior
Court for the relief the bill provides, which does not result in any cost
impact. The court system disposed of over 266,000 cases in FY 22 and
the number of cases is not anticipated to be great enough to require
additional resources.
The bill has no cost impact to the state or municipalities as employers.
To the extent that either the state or municipalities enter into non-
compete contracts with their employees, the bill is not anticipated to
change the cost of any such contract.
The Out Years
State Impact: None
Municipal Impact: None
1
Under the bill, violators are not liable to the Labor Department for any civil penalties
imposed under the state's wage laws.