Connecticut Seal

General Assembly

 

Substitute Bill No. 6658

January Session, 2013

 

*_____HB06658LAB___051413____*

AN ACT CONCERNING EMPLOYER USE OF NONCOMPETE AGREEMENTS.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. (NEW) (Effective October 1, 2013) (a) As used in this section:

(1) "Employee" means any person engaged in service to an employer in the business of the employer; and

(2) "Employer" means a person engaged in business who has employees, including the state and any political subdivision thereof.

(b) Except as provided in section 31-50a or 31-50b of the general statutes, an employer may obtain from an employee an agreement or covenant which protects an employer's reasonable competitive business interests and expressly prohibits an employee from engaging in employment or a line of business after termination of employment if (1) the agreement or covenant is reasonable as to its duration, geographical area, and the type of employment or line of business, and (2) prior to entering into the agreement or covenant, the employer provides the employee a reasonable period of time, of not less than ten business days, to seek legal advice relating to the terms of the agreement or covenant.

(c) Any person who is aggrieved by a violation of this section may bring a civil action in the Superior Court to recover damages, together with court costs and reasonable attorney's fees. To the extent any such agreement or covenant is found to be unreasonable in any respect, a court may limit the agreement or covenant to render it reasonable in light of the circumstances in which it was entered into and specifically enforce the agreement or covenant as limited.

(d) The provisions of this section shall apply to agreements or covenants entered into, renewed or extended on or after October 1, 2013.

This act shall take effect as follows and shall amend the following sections:

Section 1

October 1, 2013

New section

JUD

Joint Favorable Subst. -LCO

 

LAB

Joint Favorable