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Can I require employees to sign non-compete agreements in Connecticut? What are the requirements?

Yes, you can require employees to sign non-compete agreements in Connecticut, but there are certain requirements that must be met.

Requirements for Non-Compete Agreements in Connecticut

  1. Consideration: Non-compete agreements must be supported by consideration, which means that the employee must receive something of value in exchange for signing the agreement. This could be a job offer, a promotion, or some other benefit.
  2. Reasonableness: Non-compete agreements must be reasonable in scope, duration, and geographic area. This means that the restrictions imposed by the agreement must be no greater than necessary to protect the employer’s legitimate business interests.
  3. Legitimate Business Interests: Non-compete agreements must be designed to protect the employer’s legitimate business interests, such as trade secrets, confidential information, or customer relationships.
  4. Notice: Non-compete agreements must be presented to the employee at the time of hiring or at least two weeks before the agreement becomes effective.
  5. No Undue Hardship: Non-compete agreements must not impose an undue hardship on the employee. This means that the restrictions imposed by the agreement must not be so severe that they prevent the employee from earning a living.

Recent Legislation

Connecticut has recently enacted legislation that limits the use of non-compete agreements for certain types of workers. As of October 1, 2021, non-compete agreements are unenforceable against:

  • Employees classified as non-exempt under the Fair Labor Standards Act (FLSA)
  • Employees who are terminated without cause or laid off
  • Employees who are 18 years old or younger
  • Low-wage employees, defined as those earning less than twice the minimum wage

Additionally, non-compete agreements for physicians are subject to additional requirements, including a requirement that the agreement be no longer than one year and that the physician be given a copy of the agreement at least seven days before signing.

It is important to note that this is not an exhaustive list of requirements and that there may be additional considerations depending on the specific circumstances of your situation. If you have further questions or concerns, it may be helpful to consult with a legal professional. [1.1]

Regarding the additional context documents, they do not seem to be relevant to the query.

Source(s):
Jurisdiction

Connecticut