Connecticut Employee Restrictive Covenants

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Description

Restrictive covenants in employment agreements can be very useful to companies on the leading edge of technology and business innovation. This document is a general checklist of factors employers should consider with respect to the use of such covenants.

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FAQ

Colorado, Illinois, Maine, Maryland, New Hampshire, Oregon, Rhode Island, Virginia, and Washington prohibit non-compete agreements unless the employee earns above a certain salary threshold. Other states, like Iowa and Kentucky, limit the use of non-competes for certain professions such as healthcare workers.

Covenants not to compete are frequently enforced where the former employer's "confidential information" may be used or disclosed unless the employee is restrained from competing.

A restrictive covenant is a legal tool that is commonly used in employment contracts to protect businesses after employees leave. Restrictive covenants can generally be found in one of three forms: non-disclosure, non-solicitation, and non-compete clauses.

Effective October 1, 2023, PAs and APRNs may not be subject to noncompete agreements with a duration of more than one year. And, like physicians, restrictions on competition must be limited to a fifteen-mile radius from the PA's or APRN's primary site of practice, as identified in the agreement.

Non-competes are enforceable and valid in Connecticut even if the employer terminates the employment relationship (Gartner Group Inc. v. Mewes, 1992 WL 4766, at *2 (Conn. Super.

Ing to Connecticut law, a non-compete is only enforceable against a former employee if it is ?reasonable.? What is ?reasonable? for a non-compete is determined through a five-part test. The parts are: The duration of the restriction. Generally speaking, longer restrictions are harder to enforce.

Connecticut Courts may blue pencil when the parties have indicated an intent to make the terms of the covenant severable.

California law bars covenants not to compete in nearly all circumstances. In Edwards v. Arthur Anderson, the California Supreme Court determined that the law should be read strictly, and not only void the ?unreasonable? noncompete clause, but all noncompete clauses other than those explicitly allowed in the code.

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Connecticut Employee Restrictive Covenants