Make a Connecticut Non-Compete Agreement

Applicable State Laws - §§ 31-50a through 31-50b 

Connecticut laws do allow for the use of non-compete agreements. However, they must include a reasonable geographical area as well as a reasonable length of time. They also cannot be considered adverse to the public's interests. The laws also consider the employee's opportunity and do restrict the use of non-compete agreements toward the following professionals:

• Security Guards - Connecticut does not allow employers to require security guards to sign non-compete agreements that limit the employee's ability to find similar employment with a new employer.
• Broadcast Industry Workers - The state dictates that no former employee in the broadcast industry can be forbidden from securing employment with another network or station within a certain geographic scope or region after the industry worker’s employment with the former employer is terminated.
• Physicians - The state dictates that no physician in health care shall be required to sign non-compete agreements unless it is absolutely necessary to protect a legitimate business interest. Furthermore, these non-compete agreements must be reasonable with the period of time, scope, and geographic area.

Protect your Connecticut business by also using a Connecticut non-disclosure agreement form. Download a Connecticut non-disclosure agreement form now!

How to Write a Connecticut Non-Compete Agreement

To write a Connecticut non-compete agreement, first review the requirements according to the law and the state's limitations on use. Additionally, you should have your non-compete reviewed by a law firm before using it. Your non-compete should contain the following clauses:

• Purpose. This clause explains the purpose of the non-complete: to protect the confidential information of the business. It also introduces and identifies the parties and documents the effective date. It refers to confidential information as proprietary information. Proprietary information may include current customers' information.
• Non-compete. This clause is the heart of the overall agreement. It includes the time period, geographical area restriction, restricted business practices, restrictions on soliciting clients or customers, restrictions on working for general competitors, restrictions on business activities, specific competitors, specific activities, and restrictions on employee solicitation. Keep in mind that the State of Connecticut does not allow non-compete agreements when they limit the employee's ability to work in certain industries.
• Time period. This clause explains when the time period begins: either when the employee or independent contractor begins working for the business or when the relationship terminates.
• Purchase options. This clause states whether your business will allow the other party to buy out the agreement for a specific payment. If so, the payment amount is listed in this clause.
• Jurisdiction. This clause states that the laws in the State of Connecticut will govern the agreement.
• Confidential agreement. This clause states that the term "confidential information" as it is used throughout the non-compete agreement means any and all technical and non-technical information provided by your business means any and all technical and non-technical information provided by your business that includes and is not limited to any data or other proprietary information related to products, inventions, plans, methods, processes, developmental or experimental products, intellectual property, software, databases, customer lists, vendor or supplier lists, marketing methods, reports, business plans, financial information, or other matter pertaining to your business or any of your clients, consultants, or licensees that is disclosed to the other party under the terms of the agreement.
• Permitted disclosure. This clause explains when confidential information is no longer confidential. This usually happens when information becomes public through no fault of the other party, when then information is discovered by the other party on their own without a breach of another person, is released to the public after the written consent of the business, etc.
• Confidentiality. This clause states that the other party acknowledges that the information they have access to is confidential and that they have agreed that they will not directly or indirectly disclose or communicate it to another party without the business’s consent. They also agree that they may not use the information for any other purpose other than to further the business without the business’s written consent.
• Consultants and employees bound. This clause states that the non-compete agreement binds both consultants and employees and that they are on a need-to-know basis in regards to the information. It also states they must keep the information in the strictest of confidence.
• Return of materials. This clause states that when the non-compete agreement is terminated or when your business requests it, the other party must promptly return all documents and other tangible materials that represent the business’s confidential information and any copies of it that exist. The business will also notify the other party upon discovering any loss or unauthorized disclosure of the confidential information.
• Remedies. This clause explains the remedies your business may be entitled to pursue if the other party breaches the non-compete agreement. It is reliant upon Connecticut law. Examples include the recovery of court costs and reasonable attorney fees, the award by a court of a temporary restraining order or preliminary injunction against the unauthorized use of information, etc., as well as any and all other remedies available under Connecticut law or as provided under equity.
• Choice of law. This clause states that the laws of the State of Connecticut govern the non-compete agreement.
• Entire agreement. This final clause states the entire non-compete may only be amended in writing and only amended if the parties sign it. To execute the non-compete agreement, both parties must sign and print their names. The signatures must also be dated.

Each party should receive a copy of the agreement for their records.