A Connecticut non-compete agreement involves an employee and an employer. They are used to protect the employer and prohibit the employee from revealing any proprietary information during or after employment. Learn everything you need to know about Connecticut non-compete agreements here.
Is a Non-Compete Legally Enforceable in Connecticut?
Yes, non-compete agreements are legally enforceable in Connecticut in many circumstances. However, conditions apply that affect the enforceability of these legal documents between individuals and companies, and their workforce.
What Is Protected?
A non-compete agreement in Connecticut cannot be overly broad. It must contain certain parameters dealing with customer relationships, trade secrets and other confidential information an employee might have gleaned during their employment.
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 – The new restrictions on the duration of time that a Connecticut non-compete agreement can restrict a former worker’s labor activities is one year.
- Geographic reach – This must be a reasonable area, and include only what is necessary to protect a legitimate business interest.
- Extent of restraint on employee – Consider whether the employee will be able to pursue a career and earn a living under the terms of the non-compete agreement in Connecticut.
- Extent of interference with public interest – Depending on the specifics of the case involving a non-compete agreement, Connecticut courts can consider whether this interference helps or harms the general public.
When using a Connecticut non-compete agreement you should also keep in mind the following:
- 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.
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.
Non-Compete Agreement Connecticut Limitations
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. There are income thresholds for workers earning less than triple Connecticut’s minimum wage. Non-compete agreements also are unenforceable against non-exempt employees.
Limitations on time
The new law restricts and restrains former employees’ actions for more over a year, and cannot be “more restrictive than necessary in duration, geographic scope, type of work and type of employer.”
Non-compete agreement Connecticut geographical limitations
Geographical limitations cannot be so broad they inflict undue hardship on workers’ ability to earn a living. This factor alone could invalidate the non-compete agreement Connecticut workers signed.
Connecticut Non-Compete Agreement Sample
Below, you can find a sample of a Connecticut Non-Compete Agreement, which you can download in PDF and Word format:
