A Connecticut Non-Compete Agreement is a legal contract that is put in place to protect the employer’s interests and prevent the employee from disclosing any confidential information during or after their employment.
To be valid, the agreement must specify the scope of customer relationships, trade secrets, and other confidential information that the employee may have acquired, and cannot be too comprehensive. It is essential to understand the terms of the agreement before signing it.
Reasonable Uses and Objections
- Are they enforceable when terminated without cause? – Yes.
- Is an employee non-solicitation agreement permitted? – Yes.
- Are customer non-solicitation agreements permitted? – Yes.
- Does continuing employment equal sufficient consideration? – No.
Legally Enforceable in Connecticut?
Yes, non-compete agreements are legally enforceable in Connecticut in many circumstances. However, conditions affect the enforceability of these legal documents between individuals, companies, and their workforce.
Reasonable Use and Exemptions
A Connecticut non-compete agreement is designed to protect confidential business information. To remain in compliance with the state’s civil laws, the below factors must be reflected in all Connecticut non-compete agreements:
- Time – One year is the new restriction on the duration that a Connecticut non-compete agreement can restrict a former worker’s labor activities.
- Geographic reach – This must be a reasonable area and include only what is necessary to protect a legitimate business interest.
- The extent of restraint on employee – Consider whether the employee can pursue a career and earn a living under the terms of the non-compete agreement in Connecticut.
- The extent of interference with the public interest – Connecticut courts can consider whether this interference helps or harms the general public depending on the case’s specifics involving a non-compete agreement.
Exemptions
There are some exemptions to Connecticut non-compete exemptions. Two examples are security guards and broadcasters. Physicians licensed in our state have limited exemptions, too.
*Notice*
Connecticut Raised Bill No.5249, An Act Concerning Non-compete Agreements, details recent changes to the law regarding non-compete agreements, Connecticut geographical limitations, and related matters. These changes became law during the summer of 2022 and could affect your Connecticut non-compete agreement.
Post-employment restrictions are now limited to a year of labor restraint. Income is also now a factor. Income thresholds exist for workers earning less than triple Connecticut’s minimum wage. Non-compete agreements also are unenforceable against non-exempt employees.
Time limitations
The new law restricts and restrains former employees’ actions for over a year and cannot be “more restrictive than necessary in duration, geographic scope, type of work and type of employer.”
Geographical limitations
Geographical limitations cannot be so broad they inflict undue hardship on workers’ living ability. This factor alone could invalidate the non-compete agreement Connecticut workers signed.
Sample
Below, you can find a sample of a Connecticut Non-Compete Agreement, which you can download in PDF and Word format:
