New Connecticut Noncompetition Requirements for Employees of Surviving Entity of Mergers and Acquisitions

On June 24, 2013, Connecticut Governor Dannel Malloy signed a new law to become effective on October 1, 2013, that imposes additional requirements for noncompete agreements in Connecticut. Public Act No. 13-309, broadly entitled An Act Concerning Employer Use of Noncompete Agreements, applies only to noncompete agreements signed, renewed or extended on or after October 1, 2013, between a surviving employer of a merger or acquisition and its employees.

Under the new law, if, after a merger or acquisition, an employee is being hired by or continuing his or her employment with the surviving entity, and the surviving entity intends to bind the employee to post-termination noncompetition restrictions, the employer must provide the employee with a written copy of the noncompeteagreement and at least seven (7) days to consider signing the agreement.

Please see full update below for more information.

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