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OLR Bill Analysis
SB 1035
AN ACT CONCERNING LIMITATIONS ON THE USE OF
NONDISCLOSURE AGREEMENTS.
SUMMARY
This bill generally prohibits the use of non-disclosure and non-
disparagement agreements in employment.
It makes it a discriminatory practice, under the laws administered by
the Commission on Human Rights and Opportunities (CHRO), for an
employer to take certain actions, such as (1) terminating employees for
disclosing conduct they reasonably believed to be a discriminatory
employment practice or (2) requiring employees to enter an agreement
that prohibits them from disclosing this conduct. It also voids any
provision in an agreement between an employer and employee or
independent contractor that prohibits the employee or contractor from
disparaging or disclosing conduct they reasonably believe to be a
discriminatory employment practice.
Outside of the CHRO laws, the bill also makes void and
unenforceable any provision in an employment contract that requires
an employee not to disclose or discuss conduct that he or she reasonably
believes to be legally impermissible discrimination, harassment, or
retaliation; a wage and hour violation; or a sexual assault, or that is
recognized as against a clear mandate of public policy. It prohibits
employers from (1) discharging or retaliating against an employee for
disclosing this type of conduct in the workplace or at work-related
events, (2) asking or requiring an employee to enter into a prohibited
nondisclosure agreement, or (3) enforcing one.
Under the bill, employers who violate these prohibitions are liable for
actual or statutory damages of at least $10,000. For agreements entered
into before October 1, 2025, however, the prohibited provisions are only 2025SB-01035-R000481-BA.DOCX
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void and unenforceable if they were entered into at the outset or during
the course of employment, and employees can only recover damages
related to preventing their enforcement.
EFFECTIVE DATE: October 1, 2025
DISCRIMINATORY EMPLO YMENT PRACTICES
The bill makes it a discriminatory practice for an employer, or the
employer’s agent, to:
1. refuse to hire or employ; discriminate in compensation or in
terms, conditions, or privileges of employment; or bar or
discharge from employment an employee or independent
contractor because they (a) disclosed conduct that they
reasonably believe to be a discriminatory employment practice
or (b) disparaged the employer for engaging in conduct they
reasonably believe to be such a practice; or
2. require or request a prospective, current, or former employee or
independent contractor to enter into an agreement containing a
provision that is void under the bill (see directly below), or for an
employer to attempt to enforce the provision.
Existing law gives someone adversely affected by a discriminatory
practice, or CHRO itself, the right to file a complaint with CHRO.
Void Provision
The bill voids as against public policy any provision in an agreement
between an employer and a prospective, current, or former employee or
independent contractor that prohibits disparagement or disclosure of
conduct the employee or contractor reasonably believes to be a
discriminatory employment practice.
Damages
Under the bill, an employer who violates this provision is liable to an
employee or independent contractor for actual damages or statutory
damages of $10,000, whichever is more, as well as other remedies
provided under law, including those described below. 2025SB-01035-R000481-BA.DOCX
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Legal Interpretation and Remedial Purpose; Interns and
Volunteers
The bill specifies that the provisions described above must (1) be
liberally construed to carry out their remedial purpose and (2) extend to
paid or unpaid interns and any volunteer engaged in service to an
employer in this state in the employer’s business.
NONDISCLOSURE AND NO NDISPARAGEMENT AGREE MENTS
Separate from the CHRO discrimination laws, the bill also generally
prohibits an employer from including nondisclosure or
nondisparagement clauses in employment contracts. Under these
provisions of the bill, an “employee” includes (1) a current, former, or
prospective employee, or an independent contractor; and (2) any elected
or appointed official of a municipality, board, commission, counsel, or
other governmental body. An “employer” includes the state and its
political subdivisions, and anyone who acts, directly or indirectly, in the
employer’s interest to any of its employees and any of the employer’s
successors in interest. A “volunteer” is a person who provides services
to an employer without compensation, including interns.
Void and Unenforceable Provisions
The bill makes any provision in an employment contract between an
employer and an employee or volunteer void and unenforceable if it
requires the employee or volunteer not to disclose or discuss conduct,
or a settlement involving conduct, that he or she reasonably believed to
be legally impermissible (under state, federal, or common law)
discrimination, harassment, or retaliation directed at an employee or
volunteer; a wage and hour violation; or a sexual assault, or that is
recognized as against a clear mandate of public policy.
Prohibited Provisions. The bill further specifies that prohibited
nondisclosure or nondisparagement provisions:
1. concern legally impermissible conduct at the workplace, at work-
related events coordinated by or through the employer, between
employees or volunteers, or between an employer and an
employee or volunteer, whether on or off the employment 2025SB-01035-R000481-BA.DOCX
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premises, and
2. include those in employment agreements, independent
contractor agreements, agreements to pay compensation for the
release of a legal claim, or any other form of agreement between
the employer and an employee or a volunteer.
Violations
The bill makes it a violation for an employer to:
1. discharge or otherwise discriminate or retaliate against an
employee or volunteer for disclosing or discussing conduct
occurring in the workplace, at work-related events coordinated
by or through the employer, between employees or volunteers,
or between the employer and an employee or volunteer, whether
on or off the employment premises, that the employee or
volunteer reasonably believed to be (a) legally impermissible
discrimination, harassment, or retaliation directed at an
employee or volunteer; (b) a wage and hour violation or a sexual
assault; or (c) recognized as against a clear mandate of public
policy;
2. request or require that an employee or volunteer enter into an
agreement provision prohibited by this section; or
3. enforce a provision of an agreement prohibited by this section,
whether through a lawsuit, a threat to enforce, or any other
attempt to influence a party to comply with a provision in any
agreement that is prohibited under the bill.
Actions Not Prohibited
The bill specifies that it does not prohibit:
1. an employer and an employee or volunteer from protecting trade
secrets or proprietary or confidential information that does not
involve illegal acts;
2. an employee or volunteer from requesting a binding written 2025SB-01035-R000481-BA.DOCX
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agreement with the employer, which may include terms and
conditions that preclude the employer from disclosing certain
confidential information about an employee or a volunteer that
does not involve illegal acts; or
3. enforcing a provision in any agreement that prohibits disclosing
the amount of a claim settlement.
Civil Cause of Action and Damages
The bill creates a civil cause of action by making any employer who
violates these provisions on or after October 1, 2025, liable for actual or
statutory damages of $10,000, whichever is more, as well as attorney’s
fees and costs.
Limits for Agreements Entered Before October 1, 2025
Under the bill, a prohibited nondisclosure or nondisparagement
provision entered before October 1, 2025, is void and unenforceable only
if it was entered into at the outset of employment or during
employment. And in these cases, an employee may recover only
damages relating to preventing the provision’s enforcement.
Additionally, this does not apply to a nondisclosure or
nondisparagement provision in an agreement to settle a legal claim.
Legal Interpretation and Remedial Purpose
The bill specifies that its (1) provisions must be liberally construed to
effectuate its remedial purpose and (2) remedies are cumulative and
must not be construed as restricting any other remedy available under
law.
Governing Law
Under the bill, a nondisclosure or nondisparagement provision in
any agreement signed by an employee or volunteer who is a
Connecticut resident is governed by Connecticut laws. 2025SB-01035-R000481-BA.DOCX
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COMMITTEE ACTION
Labor and Public Employees Committee
Joint Favorable
Yea 9 Nay 4 (03/18/2025)