Connecticut Seal

General Assembly

File No. 262

    February Session, 2018

House Bill No. 5497

House of Representatives, April 5, 2018

The Committee on Banking reported through REP. LESSER of the 100th Dist., Chairperson of the Committee on the part of the House, that the bill ought to pass.

AN ACT PROHIBITING CERTAIN EMPLOYERS IN THE SECURITIES INDUSTRY FROM REQUIRING EMPLOYEES TO ENTER INTO NONCOMPETE AGREEMENTS.

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

Section 1. (NEW) (Effective October 1, 2018) On or after October 1, 2018, no agent, broker-dealer, investment adviser or investment adviser agent, each as defined in section 36b-3 of the general statutes, may require as a condition for employment that any person enter into an agreement prohibiting such person from engaging in the same or a similar job, for another employer or as a self-employed person, for a specified period of time after termination of employment with such agent, broker-dealer, investment adviser or investment adviser agent. Any such prohibition in an agreement entered into, renewed or extended on or after October 1, 2018, shall be void.

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

Section 1

October 1, 2018

New section

BA

Joint Favorable

 

The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose. In general, fiscal impacts are based upon a variety of informational sources, including the analyst's professional knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.


OFA Fiscal Note

State Impact: None

Municipal Impact: None

Explanation

The bill results in no fiscal impact to the state or municipalities as it concerns agreements between private entities.

The Out Years

State Impact: None

Municipal Impact: None

OLR Bill Analysis

HB 5497

AN ACT PROHIBITING CERTAIN EMPLOYERS IN THE SECURITIES INDUSTRY FROM REQUIRING EMPLOYEES TO ENTER INTO NONCOMPETE AGREEMENTS.

SUMMARY

This bill prohibits agents, broker-dealers, investment advisers, or investment adviser agents, as defined by the Connecticut Uniform Securities Act, from requiring employees to enter into a noncompete agreement that prohibits them from working in a similar or identical job for a certain period after their employment ends. The bill voids any such noncompete agreement entered into on or after October 1, 2018.

EFFECTIVE DATE: October 1, 2018

COMMITTEE ACTION

Banking Committee

Joint Favorable

Yea

10

Nay

9

(03/20/2018)

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