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.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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