HB 6494 – ConnecticutStatus: In Process
Year Introduced: 2023
This bill sets limits on the use of “covenant not to compete” provisions in employment contracts. Under the bill, a “covenant not to compete” (i.e., noncompete agreement) means a contract, provision, or agreement that restrains a worker (employee or independent contractor) from, or imposes penalties for, engaging in any kind of profession, occupation, trade, or business in a geographic area for a set period after separation from employment. The bill excludes from this definition (1) nonsolicitation agreements that meet certain standards, (2) nondisclosure or confidentiality agreements, (3) agreements not to reapply with the same employer after being terminated, and (4) any contract or agreement made (a) in anticipation of a sale of a business’s goodwill or all of the seller’s ownership interest in a business or (b) as part of a partnership or ownership agreement.
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