Connecticut 2024 Regular Session

Connecticut Senate Bill SB00361 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
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3	3	LCO No. 2549 1 of 4
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5	5	General Assembly Raised Bill No. 361
6	6	February Session, 2024
7	7	LCO No. 2549
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9	9
10	10	Referred to Committee on JUDICIARY
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13	13	Introduced by:
14	14	(JUD)
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19	19	AN ACT CONCERNING THE IMPERMISSIBLE USE OF
20	20	NONDISCLOSURE AGREEMENTS IN THE WORKPLACE.
21	21	Be it enacted by the Senate and House of Representatives in General
22	22	Assembly convened:
23	23
24	24	Section 1. (NEW) (Effective October 1, 2024) (a) As used in this section: 1
25	25	(1) "Employee" means any person engaged in service to an employer 2
26	26	in this state in the business of the employer. "Employee" includes a 3
27	27	current, former or prospective employee, or an independent contractor; 4
28	28	(2) "Employer" means any person engaged in any activity, enterprise 5
29	29	or business who employs one or more employees, and includes any 6
30	30	person who acts, directly or indirectly, in the interest of an employer to 7
31	31	any of the employees of such employer and any successor in interest of 8
32	32	an employer; and 9
33	33	(3) "Volunteer" means any person who provides services to an 10
34	34	employer without compensation for such services. "Volunteer" includes 11
35	35	an intern providing service to an employer. 12
36	36	(b) Any provision in an agreement between an employer and an 13 Raised Bill No. 361
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38	38
39	39
40	40	LCO No. 2549 2 of 4
41	41
42	42	employee or volunteer not to disclose or discuss conduct, or the 14
43	43	existence of a settlement involving conduct, that the employee or 15
44	44	volunteer reasonably believed under state, federal or common law to be: 16
45	45	Legally impermissible discrimination, legally impermissible 17
46	46	harassment, legally impermissible retaliation directed at an employee or 18
47	47	volunteer, a wage and hour violation or a sexual assault, or that is 19
48	48	recognized as against a clear mandate of public policy, shall be void and 20
49	49	unenforceable. Prohibited nondisclosure and nondisparagement 21
50	50	provisions in an agreement between an employee or volunteer and an 22
51	51	employer are those provisions concerning legally impermissible 23
52	52	conduct that occurs at the workplace, at work-related events 24
53	53	coordinated by or through the employer, between employees or 25
54	54	volunteers, or between an employer and an employee or volunteer, 26
55	55	whether on or off the employment premises. Prohibited nondisclosure 27
56	56	and nondisparagement provisions include those contained in 28
57	57	employment agreements, independent contractor agreements, 29
58	58	agreements to pay compensation in exchange for the release of a legal 30
59	59	claim, or any other form of agreement between the employer and an 31
60	60	employee or a volunteer. 32
61	61	(c) It shall be a violation of this section for an employer to: (1) 33
62	62	Discharge or otherwise discriminate or retaliate against an employee or 34
63	63	volunteer for disclosing or discussing conduct that the employee or 35
64	64	volunteer reasonably believed to be legally impermissible 36
65	65	discrimination, legally impermissible harassment, legally impermissible 37
66	66	retaliation directed at an employee or volunteer, a wage and hour 38
67	67	violation or a sexual assault, or that is recognized as against a clear 39
68	68	mandate of public policy, occurring in the workplace, at work-related 40
69	69	events coordinated by or through the employer, between employees or 41
70	70	volunteers, or between the employer and an employee or volunteer, 42
71	71	whether on or off the employment premises; (2) request or require that 43
72	72	an employee or volunteer enter into any agreement provision that is 44
73	73	prohibited by this section; or (3) enforce a provision of an agreement 45
74	74	prohibited by this section, whether through a lawsuit, a threat to enforce 46
75	75	or any other attempt to influence a party to comply with a provision in 47 Raised Bill No. 361
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79	79	LCO No. 2549 3 of 4
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81	81	any agreement that is prohibited by this section. 48
82	82	(d) The provisions of this section shall not prohibit: (1) An employer 49
83	83	and an employee or volunteer from protecting trade secrets, proprietary 50
84	84	information or confidential information that does not involve illegal 51
85	85	acts; and (2) the enforcement of a provision in any agreement that 52
86	86	prohibits the disclosure of the amount paid in settlement of a claim. 53
87	87	(e) Any employer who, on or after October 1, 2024, violates the 54
88	88	provisions of this section shall be liable in a civil cause of action for 55
89	89	actual or statutory damages of ten thousand dollars, whichever is more, 56
90	90	as well as reasonable attorneys' fees and costs. 57
91	91	(f) A nondisclosure or nondisparagement provision prohibited under 58
92	92	subsection (b) of this section and entered into prior to October 1, 2024 59
93	93	shall be void and unenforceable only where such provision was entered 60
94	94	into at the outset of employment or during the course of employment. 61
95	95	For a nondisclosure or nondisparagement provision void and 62
96	96	unenforceable under this subsection, an employee may recover only 63
97	97	damages relating to preventing the enforcement of the provision. The 64
98	98	provisions of this subsection shall not apply to a nondisclosure or 65
99	99	nondisparagement provision contained in an agreement to settle a legal 66
100	100	claim. 67
101	101	(g) A nondisclosure or nondisparagement provision in any 68
102	102	agreement signed by an employee or volunteer who is a resident of this 69
103	103	state is governed by the laws of this state. 70
104	104	(h) The provisions of this section are to be liberally construed so as to 71
105	105	effectuate its remedial purpose. 72
106	106	This act shall take effect as follows and shall amend the following
107	107	sections:
108	108
109	109	Section 1 October 1, 2024 New section
110	110	Raised Bill No. 361
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112	112
113	113
114	114	LCO No. 2549 4 of 4
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116	116	Statement of Purpose:
117	117	To prohibit the use of nondisclosure agreements in certain instances in
118	118	the workplace.
119	119	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
120	120	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
121	121	underlined.]
122	122