Connecticut 2023 Regular Session

Connecticut House Bill HB06594 Compare Versions

Version 1 (Old)

Version 2 (New)

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7		-	General Assembly ~~Substitute~~ Bill No. 6594
	5	+	General Assembly Raised Bill No. 6594
8	6		January Session, 2023
	7	+	LCO No. 3545
9	8
	9	+
	10	+	Referred to Committee on LABOR AND PUBLIC EMPLOYEES
	11	+
	12	+
	13	+	Introduced by:
	14	+	(LAB)
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13	18
14	19		AN ACT CONCERNING NONCOMPETE 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, 2023) As used in this section and 1
19	24		sections 2 to 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, excluding any overtime or bonus compensation, and (B) 5
23	28		health insurance benefits and other fringe benefits received by an 6
24	29		employee over the course of the prior calendar year; 7
25	30		(2) "Covenant not to compete" means a contract, provision or other 8
26		-	agreement entered into, amended, extended or renewed on or after 9
27		-	July 1, 2023, that restrains, or imposes penalties on, a worker from 10
28		-	engaging in any lawful profession, occupation, trade, calling or 11
29		-	business of any kind in any geographic area of the state for any period 12
30		-	of time after separation from employment, but does not mean (A) a 13
31		-	nonsolicitation agreement, provided such agreement (i) does not 14
32		-	restrict a worker's activities for more than one year, and (ii) is no more 15
33		-	restrictive than necessary in duration, geographic scope, type of work 16
34		-	and type of employer, (B) a nondisclosure or confidentiality 17
35		-	agreement, (C) a contract, provision or other agreement in which an 18
36		-	employee agrees to not reapply for employment with an employer 19 Substitute Bill No. 6594
	31	+	agreement entered into, amended, extended or renewed on or after July 9
	32	+	1, 2023, that restrains, or imposes penalties on, a worker from engaging 10
	33	+	in any lawful profession, occupation, trade, calling or business of any 11
	34	+	kind in any geographic area of the state for any period of time after 12
	35	+	separation from employment, but does not mean (A) a nonsolicitation 13
	36	+	agreement, provided such agreement (i) does not restrict a worker's 14
	37	+	activities for more than one year, and (ii) is no more restrictive than 15 Raised Bill No. 6594
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43		-	after being terminated by such employer, (D) any covenant not to 20
44		-	compete, pursuant to sections 20-14p, 20-681 and 30-50b of the general 21
45		-	statutes, or (E) any contract, provision or other agreement made (i) in 22
46		-	anticipation of a sale of the goodwill of a business or all of the seller's 23
47		-	ownership interest in a business, or (ii) as part of a partnership or 24
48		-	ownership agreement; 25
49		-	(3) "Employee" means any individual employed or permitted to 26
50		-	work by an employer; 27
51		-	(4) "Employer" has the same meaning as provided in section 31-71a 28
52		-	of the general statutes; 29
53		-	(5) "Exclusivity agreement" means a contract, provision or other 30
54		-	agreement entered into, amended, extended or renewed on or after 31
55		-	July 1, 2023, that restrains a worker from, or imposes a penalty on, a 32
56		-	worker for being simultaneously employed by another employer, 33
57		-	working as an independent contractor or being self-employed; 34
58		-	(6) "Exempt employee" means an employee not included in the 35
59		-	definition of "employee" in section 31-58 of the general statutes; 36
60		-	(7) "Legitimate business interest" means an interest in (A) the 37
61		-	protection of trade secrets or confidential information that does not 38
62		-	qualify as a trade secret, or (B) preserving established goodwill with 39
63		-	the employer's customers; 40
64		-	(8) "Minimum fair wage" has the same meaning as provided in 41
65		-	section 31-58 of the general statutes; 42
66		-	(9) "Monetary compensation" means (A) wages, as defined in 43
67		-	section 31-71a of the general statutes, earned over the course of the 44
68		-	prior calendar year or portion thereof, for which the employee was 45
69		-	employed, annualized based on the period of employment and 46
70		-	calculated as of (i) the date that enforcement of the covenant not to 47
71		-	compete is sought, or (ii) the date of separation from employment, 48
72		-	whichever is earlier, and (B) payments made to independent 49 Substitute Bill No. 6594
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	42	+
	43	+	necessary in duration, geographic scope, type of work and type of 16
	44	+	employer, (B) a nondisclosure or confidentiality agreement, (C) a 17
	45	+	contract, provision or other agreement in which an employee agrees not 18
	46	+	to reapply for employment with an employer after being terminated by 19
	47	+	such employer, (D) any covenant not to compete, pursuant to sections 20
	48	+	20-14p, 20-68i and 30-50b of the general statutes, or (E) any contract, 21
	49	+	provision or other agreement made (i) in anticipation of a sale of the 22
	50	+	goodwill of a business or all of the seller's ownership interest in a 23
	51	+	business, or (ii) as part of a partnership or ownership agreement; 24
	52	+	(3) "Employee" means any individual employed or permitted to work 25
	53	+	by an employer; 26
	54	+	(4) "Employer" has the same meaning as provided in section 31-71a 27
	55	+	of the general statutes; 28
	56	+	(5) "Exclusivity agreement" means a contract, provision or other 29
	57	+	agreement entered into, amended, extended or renewed on or after July 30
	58	+	1, 2023, that restrains a worker from, or imposes a penalty on a worker 31
	59	+	for being simultaneously employed by another employer, working as 32
	60	+	an independent contractor or being self-employed; 33
	61	+	(6) "Exempt employee" means an employee not included in the 34
	62	+	definition of "employee" in section 31-58 of the general statutes; 35
	63	+	(7) "Legitimate business interest" means an interest in (A) the 36
	64	+	protection of trade secrets or confidential information that does not 37
	65	+	qualify as a trade secret, or (B) preserving established goodwill with the 38
	66	+	employer's customers; 39
	67	+	(8) "Minimum fair wage" has the same meaning as provided in 40
	68	+	section 31-58 of the general statutes; 41
	69	+	(9) "Monetary compensation" means (A) wages, as defined in section 42
	70	+	31-71a of the general statutes, earned over the course of the prior 43
	71	+	calendar year or portion thereof, for which the employee was employed, 44
	72	+	annualized based on the period of employment and calculated as of (i) 45 Raised Bill No. 6594
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79		-	contractors based on services rendered, annualized based on the 50
80		-	period during which the independent contractor provided services and 51
81		-	calculated as of (i) the date that enforcement of the covenant not to 52
82		-	compete is sought, or (ii) the date of separation from employment, 53
83		-	whichever is earlier; 54
84		-	(10) "Nonsolicitation agreement" means (A) a contract, provision or 55
85		-	other agreement between an employer and an employee that prohibits 56
86		-	such employee, upon separation of employment, from soliciting (i) any 57
87		-	employee of the employer to leave the employer, or (ii) any customer 58
88		-	of the employer to cease or reduce the extent to which it is doing 59
89		-	business with the employer, or (B) a contract, provision or other 60
90		-	agreement between an employer and a customer of such employer that 61
91		-	prohibits such customer from soliciting an employee of the employer 62
92		-	to cease or reduce the extent to which such employee is doing business 63
93		-	with the employer; 64
94		-	(11) "Separation from employment" means the date in which an 65
95		-	employment or independent contractor relationship ends; and 66
96		-	(12) "Worker" means an employee or an independent contractor. 67
97		-	Sec. 2. (NEW) (Effective July 1, 2023) (a) No covenant not to compete 68
98		-	shall be enforceable against a worker unless all of the following 69
99		-	conditions are met: 70
100		-	(1) The covenant not to compete restricts such worker's competitive 71
101		-	activities for a period of not more than one year following the 72
102		-	separation of employment; 73
103		-	(2) The covenant not to compete is necessary to protect a legitimate 74
104		-	business interest of the employer and such legitimate business interest 75
105		-	could not reasonably be protected by less restrictive means, including, 76
106		-	but not limited to, a nondisclosure agreement, nonsolicitation 77
107		-	agreement or reliance on the protections provided by the provisions of 78
108		-	chapter 625 of the general statutes; 79 Substitute Bill No. 6594
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	78	+	the date enforcement of the covenant not to compete is sought, or (ii) the 46
	79	+	date of separation from employment, whichever is earlier, and (B) 47
	80	+	payments made to independent contractors based on services rendered, 48
	81	+	annualized based on the period during which the independent 49
	82	+	contractor provided services and calculated as of (i) the date 50
	83	+	enforcement of the covenant not to compete is sought, or (ii) the date of 51
	84	+	separation from employment, whichever is earlier; 52
	85	+	(10) "Nonsolicitation agreement" means (A) a contract, provision or 53
	86	+	other agreement between an employer and an employee that prohibits 54
	87	+	such employee, upon separation of employment, from soliciting (i) any 55
	88	+	employee of the employer to leave the employer, or (ii) any customer of 56
	89	+	the employer to cease or reduce the extent to which it is doing business 57
	90	+	with the employer, or (B) a contract, provision or other agreement 58
	91	+	between an employer and a customer of such employer that prohibits 59
	92	+	such customer from soliciting an employee of the employer to cease or 60
	93	+	reduce the extent to which such employee is doing business with the 61
	94	+	employer; 62
	95	+	(11) "Separation from employment" means the date in which an 63
	96	+	employment or independent contractor relationship ends; and 64
	97	+	(12) "Worker" means an employee or an independent contractor. 65
	98	+	Sec. 2. (NEW) (Effective July 1, 2023) (a) No covenant not to compete 66
	99	+	shall be enforceable against a worker unless all of the following 67
	100	+	conditions are met: 68
	101	+	(1) The covenant not to compete restricts such worker's competitive 69
	102	+	activities for a period of not more than one year following the separation 70
	103	+	of employment; 71
	104	+	(2) The covenant not to compete is necessary to protect a "legitimate 72
	105	+	business interest" of the employer and such legitimate business interest 73
	106	+	could not reasonably be protected by less restrictive means, including, 74
	107	+	but not limited to, a nondisclosure agreement, nonsolicitation 75
	108	+	agreement or reliance on the protections provided by the provisions of 76 Raised Bill No. 6594
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115		-	(3) The covenant not to compete is no more restrictive than 80
116		-	necessary to protect a legitimate business interest in terms of the 81
117		-	duration, geographic scope, type of work and type of employer of the 82
118		-	covenant not to compete; 83
119		-	(4) The worker is an exempt employee; 84
120		-	(5) A written copy of the covenant not to compete is provided to the 85
121		-	worker not later than ten business days prior to (A) the worker's 86
122		-	deadline to accept an offer of employment or to enter into an 87
123		-	independent contractor relationship, or (B) the date the covenant not to 88
124		-	compete is signed, whichever is earlier; 89
125		-	(6) The covenant not to compete contains a statement of the 90
126		-	worker's rights under the covenant not to compete, provided such 91
127		-	statement includes the following: (A) Not all covenants not to compete 92
128		-	are enforceable, (B) a covenant not to compete for a worker whose 93
129		-	monetary compensation is less than the amount described in 94
130		-	subsection (b) of this section is illegal, (C) a worker may contact the 95
131		-	Attorney General if such worker believes they are subject to an illegal 96
132		-	covenant not to compete, and (D) a worker has the right to consult 97
133		-	with counsel prior to signing a covenant not to compete; 98
134		-	(7) The covenant not to compete is signed by the worker and the 99
135		-	employer or contractor separately from any other agreement 100
136		-	establishing the relationship between the worker and the employer or 101
137		-	contractor; 102
138		-	(8) If the covenant not to compete is added to an existing 103
139		-	employment or independent contractor relationship, the covenant not 104
140		-	to compete is supported by sufficient consideration and is not solely 105
141		-	the continuation of such employment or contractor relationship; 106
142		-	(9) The employment or contract relationship was not terminated by 107
143		-	the worker for good cause attributable to the employer or contractor; 108
144		-	(10) The covenant not to compete does not require a worker to 109 Substitute Bill No. 6594
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	113	+
	114	+	chapter 625 of the general statutes; 77
	115	+	(3) The covenant not to compete is no more restrictive than necessary 78
	116	+	to protect a legitimate business interest in terms of the duration, 79
	117	+	geographic scope, type of work and type of employer of the covenant 80
	118	+	not to compete; 81
	119	+	(4) The worker is an exempt employee; 82
	120	+	(5) A written copy of the covenant not to compete is provided to the 83
	121	+	worker not later than ten business days prior to (A) the worker's 84
	122	+	deadline to accept an offer of employment or to enter into an 85
	123	+	independent contractor relationship, or (B) the date the covenant not to 86
	124	+	compete is signed, whichever is earlier; 87
	125	+	(6) The covenant not to compete contains a statement of the worker's 88
	126	+	rights under the covenant not to compete, provided such statement shall 89
	127	+	include the following: (A) Not all covenants not to compete are 90
	128	+	enforceable, (B) a covenant not to compete for a worker whose monetary 91
	129	+	compensation is less than the amount described in subsection (b) of this 92
	130	+	section is illegal, (C) a worker may contact the Attorney General if such 93
	131	+	worker believes they are subject to an illegal covenant not to compete, 94
	132	+	and (D) a worker has the right to consult with counsel prior to signing a 95
	133	+	covenant not to compete; 96
	134	+	(7) The covenant not to compete is signed by the worker and the 97
	135	+	employer or contractor separately from any other agreement 98
	136	+	establishing the relationship between the worker and the employer or 99
	137	+	contractor; 100
	138	+	(8) If the covenant not to compete is added to an existing employment 101
	139	+	or independent contractor relationship, the covenant not to compete is 102
	140	+	supported by sufficient consideration and is not solely the continuation 103
	141	+	of such employment or contractor relationship; 104
	142	+	(9) The employment or contract relationship was not terminated by 105
	143	+	the worker for good cause attributable to the employer or contractor; 106 Raised Bill No. 6594
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151		-	submit to adjudication in a forum outside of this state or otherwise 110
152		-	deprive such worker of the protections or benefits of this section; and 111
153		-	(11) The covenant not to compete does not unreasonably interfere 112
154		-	with the public interest and is consistent with the provisions of this 113
155		-	section, other laws of this state and public policy. 114
156		-	(b) No covenant not to compete shall be enforceable against a 115
157		-	worker if such worker is (1) an employee whose monetary 116
158		-	compensation is less than three times the minimum fair wage, or (2) an 117
159		-	independent contractor whose monetary compensation is less than five 118
160		-	times such minimum fair wage. 119
161		-	(c) A covenant not to compete shall be presumed unenforceable if 120
162		-	such covenant applies to (1) geographic areas in which a worker 121
163		-	neither provided services nor had a material presence or influence in 122
164		-	during the last two years of employment, or (2) types of work that the 123
165		-	worker did not perform during the last two years of employment. 124
166		-	(d) Notwithstanding the provisions of subdivision (1) of subsection 125
167		-	(a) of this section, a covenant not to compete shall be enforceable for a 126
168		-	period of not longer than two years following separation from 127
169		-	employment if such covenant not to compete is a part of an agreement 128
170		-	under which the worker is compensated with the worker's base salary 129
171		-	and benefits, minus any outside compensation, for the entire duration 130
172		-	of such covenant not to compete. 131
173		-	Sec. 3. (NEW) (Effective July 1, 2023) (a) Except as otherwise 132
174		-	provided in subsection (b) of this section, no employer or contractor 133
175		-	may request or require a worker to sign or agree to an exclusivity 134
176		-	agreement, unless such worker is (1) an exempt employee whose 135
177		-	monetary compensation is more than three times the minimum fair 136
178		-	wage, or (2) an independent contractor whose monetary compensation 137
179		-	is more than five times the minimum fair wage. 138
180		-	(b) An employer or contractor may request or require a worker to 139
181		-	sign an exclusivity agreement if such worker's additional employment, 140 Substitute Bill No. 6594
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	149	+	(10) The covenant not to compete does not require a worker to submit 107
	150	+	to adjudication in a forum outside of this state or otherwise deprive such 108
	151	+	worker of the protections or benefits of this section; and 109
	152	+	(11) The covenant not to compete does not unreasonably interfere 110
	153	+	with the public interest and is consistent with the provisions of this 111
	154	+	section, other laws of this state and public policy. 112
	155	+	(b) No covenant not to compete shall be unenforceable against a 113
	156	+	worker if such worker is (1) an employee whose monetary 114
	157	+	compensation is less than three times the minimum fair wage, or (2) an 115
	158	+	independent contractor whose monetary compensation is less than five 116
	159	+	times such minimum fair wage. 117
	160	+	(c) A covenant not to compete shall be presumed unenforceable if 118
	161	+	such covenant applies to (1) geographic areas in which a worker neither 119
	162	+	provided services nor had a material presence or influence within the 120
	163	+	last two years of employment, or (2) types of work that the worker did 121
	164	+	not perform during the last two years of employment. 122
	165	+	(d) Notwithstanding the provisions of subdivision (1) of subsection 123
	166	+	(a) of this section, a covenant not to compete shall be enforceable for a 124
	167	+	period of not longer than two years following separation from 125
	168	+	employment if such covenant not to compete is a part of an agreement 126
	169	+	under which the worker is compensated with the worker's base salary 127
	170	+	and benefits, minus any outside compensation, for the entire duration 128
	171	+	of such covenant not to compete. 129
	172	+	Sec. 3. (NEW) (Effective July 1, 2023) (a) Except as provided in 130
	173	+	subsection (b) of this section, no employer or contractor may request or 131
	174	+	require a worker to sign or agree to an exclusivity agreement, unless 132
	175	+	such worker is (1) an "exempt employee" whose monetary 133
	176	+	compensation is more than three times the minimum fair wage, or (2) 134
	177	+	an independent contractor whose monetary compensation is more than 135
	178	+	five times the minimum fair wage. 136
	179	+	(b) An employer or contractor may request or require a worker to sign 137 Raised Bill No. 6594
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188		-	work as an independent contractor or being self-employed would (1) 141
189		-	imperil the safety of such worker, such worker's coworkers or the 142
190		-	public, or (2) substantially interfere with the reasonable and normal 143
191		-	scheduling expectations for such worker, except on-call shift 144
192		-	scheduling shall not be considered a reasonable scheduling 145
193		-	expectation for the purposes of this subsection. 146
194		-	(c) The provisions of this section shall not be construed to alter any 147
195		-	obligations of an employee to an employer under existing law, 148
196		-	including, but not limited to, the common law duty of loyalty, laws 149
197		-	preventing conflicts of interest and any corresponding policies 150
198		-	addressing such obligations. 151
199		-	Sec. 4. (NEW) (Effective July 1, 2023) (a) (1) The party seeking to 152
200		-	enforce a covenant not to compete or an exclusivity agreement against 153
201		-	a worker shall have the burden of proof in any enforcement 154
202		-	proceeding for such covenant not to compete or exclusivity agreement. 155
203		-	(2) The party required to compensate a worker in an agreement 156
204		-	described in subsection (d) of section 2 of this act shall have the burden 157
205		-	of proof in any proceeding to cease compensating a worker. 158
206		-	(b) No court may modify a covenant not to compete that violates the 159
207		-	provisions of sections 1 to 3, inclusive, of this act for purposes of 160
208		-	enforcing such covenant not to compete. 161
209		-	(c) If a covenant not to compete or an exclusivity agreement is held 162
210		-	unenforceable under sections 1 to 3, inclusive, of this act, any severable 163
211		-	provision of a contract or other agreement unrelated to such covenant 164
212		-	not to compete shall remain in full force and effect, including, but not 165
213		-	limited to, any provisions that require the payment of damages 166
214		-	resulting from any injury suffered by separation of employment. 167
215		-	(d) The Attorney General may bring a civil action in Superior Court 168
216		-	on behalf of any worker aggrieved by a violation of any provision of 169
217		-	sections 1 to 3, inclusive, of this act for any and all relief provided in 170
218		-	this section. 171 Substitute Bill No. 6594
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	184	+
	185	+	an exclusivity agreement if such worker's additional employment, work 138
	186	+	as an independent contractor or being self-employed would (1) imperil 139
	187	+	the safety of such worker, such worker's coworkers or the public, or (2) 140
	188	+	substantially interfere with the reasonable and normal scheduling 141
	189	+	expectations for such worker, except on-call shift scheduling shall not 142
	190	+	be considered a reasonable scheduling expectation for the purposes of 143
	191	+	this subsection. 144
	192	+	(c) The provisions of this section shall not be construed to alter any 145
	193	+	obligations of an employee to an employer under existing law, 146
	194	+	including, but not limited to, the common law duty of loyalty, laws 147
	195	+	preventing conflicts of interest and any corresponding policies 148
	196	+	addressing such obligations. 149
	197	+	Sec. 4. (NEW) (Effective July 1, 2023) (a) (1) The party seeking to 150
	198	+	enforce a covenant not to compete or an exclusivity agreement against 151
	199	+	a worker shall have the burden of proof in any enforcement proceeding 152
	200	+	for such covenant not to compete or exclusivity agreement. 153
	201	+	(2) The party required to compensate a worker in an agreement 154
	202	+	described in subsection (d) of section 2 of this act shall have the burden 155
	203	+	of proof in any proceeding to cease compensating a worker. 156
	204	+	(b) No court may modify a covenant not to compete that violates the 157
	205	+	provisions of sections 1 to 3, inclusive, of this act for purposes of 158
	206	+	enforcing such covenant not to compete. 159
	207	+	(c) If a covenant not to compete or an exclusivity agreement is held 160
	208	+	unenforceable under sections 1 to 3, inclusive, of this act, any severable 161
	209	+	provision of a contract or other agreement unrelated to such covenant 162
	210	+	not to compete shall remain in full force and effect, including, but not 163
	211	+	limited to, any provisions that require the payment of damages 164
	212	+	resulting from any injury suffered by separation of employment. 165
	213	+	(d) The Attorney General may bring a civil action in Superior Court 166
	214	+	on behalf of any worker aggrieved by a violation of any provision of 167
	215	+	sections 1 to 3, inclusive, of this act for any and all relief provided in this 168 Raised Bill No. 6594
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225		-	(e) If a court or an arbitrator determines that a covenant not to 172
226		-	compete or an exclusivity agreement is in violation of sections 1 to 3, 173
227		-	inclusive, of this act, the violator shall be liable for (1) the aggrieved 174
228		-	worker's actual damages, or (2) a penalty of five thousand dollars, 175
229		-	whichever is greater, in addition to reasonable attorney's fees, 176
230		-	expenses and court costs. 177
231		-	(f) No employer, officer, agent or other person who violates any 178
232		-	provision of this section shall be liable for an additional penalty under 179
233		-	section 31-69 of the general statutes. 180
234		-	Sec. 5. Section 31-50a of the general statutes is repealed and the 181
235		-	following is substituted in lieu thereof (Effective July 1, 2023): 182
236		-	(a) No employer may require any person employed in the 183
237		-	classification 339032 of the standard occupational classification system 184
238		-	of the Bureau of Labor Statistics of the United States Department of 185
239		-	Labor to enter into an agreement prohibiting such person from 186
240		-	engaging in the same or a similar job, at the same location at which the 187
241		-	employer employs such person, for another employer or as a self-188
242		-	employed person, unless the employer proves that such person has 189
243		-	obtained trade secrets, as defined in subsection (d) of section 35-51, of 190
244		-	the employer. 191
245		-	(b) (1) Any person who is aggrieved by a violation of this section 192
246		-	may bring a civil action in the Superior Court to recover damages and 193
247		-	for such injunctive and equitable relief as the court deems appropriate. 194
248		-	(2) The Labor Commissioner may request the Attorney General to 195
249		-	bring an action in the superior court for the judicial district of Hartford 196
250		-	for restitution on behalf of any person injured by any violation of this 197
251		-	section and for such injunctive or equitable relief as the court deems 198
252		-	appropriate. 199
253		-	(c) The provisions of this section shall apply to agreements entered 200
254		-	into, renewed or extended on or after October 1, 2007, and before July 201
255		-	1, 2023. 202 Substitute Bill No. 6594
	219	+	LCO No. 3545 7 of 8
	220	+
	221	+	section. 169
	222	+	(e) If a court or an arbitrator determines that a covenant not to 170
	223	+	compete or an exclusivity agreement in sections 1 to 3, inclusive, of this 171
	224	+	act, the violator shall be liable for (1) the aggrieved worker's actual 172
	225	+	damages, or (2) a penalty of five thousand dollars, whichever is greater, 173
	226	+	in addition to reasonable attorney's fees, expenses and court costs. 174
	227	+	(f) No employer, officer, agent or other person who violates any 175
	228	+	provision of this section shall be liable for an additional penalty under 176
	229	+	section 31-69 of the general statutes. 177
	230	+	Sec. 5. Section 31-50a of the general statutes is repealed and the 178
	231	+	following is substituted in lieu thereof (Effective July 1, 2023): 179
	232	+	(a) No employer may require any person employed in the 180
	233	+	classification 339032 of the standard occupational classification system 181
	234	+	of the Bureau of Labor Statistics of the United States Department of 182
	235	+	Labor to enter into an agreement prohibiting such person from engaging 183
	236	+	in the same or a similar job, at the same location at which the employer 184
	237	+	employs such person, for another employer or as a self-employed 185
	238	+	person, unless the employer proves that such person has obtained trade 186
	239	+	secrets, as defined in subsection (d) of section 35-51, of the employer. 187
	240	+	(b) (1) Any person who is aggrieved by a violation of this section may 188
	241	+	bring a civil action in the Superior Court to recover damages and for 189
	242	+	such injunctive and equitable relief as the court deems appropriate. 190
	243	+	(2) The Labor Commissioner may request the Attorney General to 191
	244	+	bring an action in the superior court for the judicial district of Hartford 192
	245	+	for restitution on behalf of any person injured by any violation of this 193
	246	+	section and for such injunctive or equitable relief as the court deems 194
	247	+	appropriate. 195
	248	+	(c) The provisions of this section shall apply to agreements entered 196
	249	+	into, renewed or extended on or after October 1, 2007, and before July 1, 197
	250	+	2023. 198 Raised Bill No. 6594
256	251
257	252
258		-	LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06594-
259		-	R01-HB.docx }
260		-	8 of 8
	253	+
	254	+	LCO No. 3545 8 of 8
261	255
262	256		This act shall take effect as follows and shall amend the following
263	257		sections:
264	258
265	259		Section 1 July 1, 2023 New section
266	260		Sec. 2 July 1, 2023 New section
267	261		Sec. 3 July 1, 2023 New section
268	262		Sec. 4 July 1, 2023 New section
269	263		Sec. 5 July 1, 2023 31-50a
270	264
271		-	Statement of Legislative Commissioners:
272		-	In Section 4(e), "is in violation of" was added for clarity.
273		-
274		-	LAB Joint Favorable Subst.
	265	+	Statement of Purpose:
	266	+	To set certain requirements for covenants not to compete and exclusivity
	267	+	agreements.
	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.]
275	271