Connecticut 2023 Regular Session

Connecticut House Bill HB06594

Introduced
2/2/23  
Refer
2/2/23  
Refer
2/2/23  
Report Pass
2/16/23  
Report Pass
2/16/23  
Refer
2/27/23  
Refer
2/27/23  
Report Pass
3/6/23  

Caption

An Act Concerning Noncompete Agreements.

Impact

The enactment of HB 06594 will significantly impact state laws concerning employment contracts. It aims to balance the interests of employers in protecting their business without unduly restricting workers' ability to seek employment. By limiting the enforceability of noncompete clauses, the bill is poised to enhance worker mobility and promote fair competition by reducing barriers for workers seeking new opportunities. The adjustment reflects a growing recognition of the need to protect employee rights in the evolving labor market.

Summary

House Bill 06594, titled 'An Act Concerning Noncompete Agreements', introduces significant changes to the enforceability of noncompete agreements in Connecticut. Effective from July 1, 2023, the bill stipulates that noncompete clauses cannot be enforced against workers unless specific conditions are met, such as restriction periods being limited to one year and being necessary to protect legitimate business interests. The bill also mandates that written copies of noncompete agreements be provided to workers in advance and declares that noncompete agreements are void for workers earning below certain thresholds of minimum fair wages.

Sentiment

General sentiment around the bill appears to be mixed but leans towards support for worker rights and fair employment practices. Advocates argue that the bill is a crucial step toward empowering employees and dismantling overly restrictive practices that inhibit their career advancement. However, some business owners and associations express concern that the bill could undermine their capacity to protect proprietary information and goodwill, suggesting potential drawbacks for business operations in competitive industries.

Contention

Notable points of contention during discussions centered on the balance between protecting business interests and safeguarding employee rights. Proponents of the bill argue that it promotes a more equitable labor market and reflects modern employment practices by recognizing the importance of worker mobility, while opponents claim that it may disadvantage businesses needing to safeguard sensitive information. The debate signifies an ongoing tension between the evolving landscape of labor rights and traditional business practices.

Companion Bills

No companion bills found.

Previously Filed As

CT HB05269

An Act Concerning Noncompete Agreements.

CT SB00409

An Act Concerning Wage Theft Responsibility.

CT SB00201

An Act Concerning Unfair Real Estate Listing Agreements And The Connecticut Unfair Trade Practices Act.

CT SB00004

An Act Concerning Victims Of Domestic Violence, The Unsolicited Transmission Of Intimate Images By Means Of An Electronic Communication Device And The Impermissible Use Of Nondisclosure Agreements In The Workplace.

CT SB00361

An Act Concerning The Impermissible Use Of Nondisclosure Agreements In The Workplace.

CT SB00413

An Act Concerning Predictable Scheduling.

CT SB00002

An Act Concerning Artificial Intelligence.

CT HB05376

An Act Concerning Home Improvement Contractors And Salespersons.

CT SB00137

An Act Concerning Gas, Electric, Sewer And Water Delivery Work.

CT HB05150

An Act Concerning Cannabis And Hemp Regulation.

Similar Bills

CA AB233

Insurance: licensees.

CA SB809

Employees and independent contractors: construction trucking.

CA AB2754

Employment contracts and agreements: sufficient funds: liability.

CA AB334

Public contracts: conflicts of interest.

CA AB1514

Worker classification: employees and independent contractors: licensed manicurists: commercial fishers.

CA AB1454

Trauma-informed diversion programs for youth.

NV AB255

Prohibits certain provisions in certain employment contracts or similar agreements. (BDR 53-116)

CT SB00906

An Act Concerning Noncompete Agreements.