AN ACT CONCERNING LIMITATIONS ON THE USE ON NONCOMPETE AGREEMENTS.

This bill restricts the enforceability of noncompete agreements in Connecticut by limiting which workers can be bound by such contracts. It directly affects employees and independent contractors by establishing wage thresholds that determine whether a noncompete is valid. Under the new rules, noncompete agreements are automatically unenforceable for workers earning less than twice the state minimum wage, and for independent contractors earning less than five times the minimum wage. Additionally, noncompetes cannot restrict workers from working in geographic areas or performing job types where they had no significant presence or activity in the two years before leaving their job. The law also clarifies that certain agreements like nonsolicitation, nondisclosure, and business sale contracts are not considered noncompetes and remain unaffected.