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Home 9 Publication 9 Connecticut General Assembly Passes Laws of Significance for Connecticut Employers Regarding Personnel Files and Non-compete Agreements

Connecticut General Assembly Passes Laws of Significance for Connecticut Employers Regarding Personnel Files and Non-compete Agreements

July 2, 2013

Caroline B. Park

Connecticut’s Personnel Files Act previously required employers to permit current and former employees to inspect their personnel files “within a reasonable period of time” after making a written request. A new amendment to this law now mandates a seven-day inspection period for current employees and a ten-day period for former employees. Both current and former employees have a right to inspect their personnel files during business hours and, if requested, receive a copy. However, if the employer and the former employee cannot agree on a location for the inspection, the employer may mail a copy to the former employee.

The new law also requires employers to provide employees with a copy of any documented disciplinary action not more than one business day after discipline is imposed. This is true whether or not the employee requests a copy. Similarly, employers must immediately provide a discharged employee with a copy of any documented termination notice. Notably, the new law does not require employers to document disciplinary actions or terminations; it only requires that if documentation exists, it must be provided to the affected employee and not just placed in the employee’s personnel file. Although the term disciplinary action is not defined in the amendment, it likely covers written warnings and suspensions and very well may include documented verbal warnings, coachings, and counselings. The new law also requires that any written termination or disciplinary notices and performance evaluations include a statement advising that an “employee may, should the employee disagree with any of the information contained in such documented disciplinary action, notice of termination or performance evaluation, submit a written statement explaining his or her position.” If an employee submits a written rebuttal, it must be included in the employee’s personnel file and accompany any transmittal or disclosure from the file to a third party.

As in the past, the statute provides that if an employee disagrees with any of the information contained in the file, the employee and the employer may agree to remove or correct it. However, absent such an agreement, the employee may still submit a written statement explaining his or her position, which must also accompany any transmittal or disclosure to a third party.

The statute does not create a private right of action, but it allows the Connecticut Department of Labor to establish fines of up to $500 for a first violation and up to $1,000 for each subsequent violation. In doing so, the DOL is to consider “all factors which the commissioner deems relevant” including the level of fine necessary to achieve immediate compliance, the character and degree of the violation, and any prior history of the employer.

The Connecticut Legislature also passed a law placing additional restrictions on non-compete agreements. The statute requires that, prior to entering into a non-compete agreement, employers must provide a written copy of the agreement to the employee and give employees a reasonable period of time, but not less than seven calendar days, to consider the merits of entering into the agreement. This requirement is only applicable where (1) an employer is acquired by, or merges with, another employer; and (2) as a result of the acquisition or merger, an employee’s continued employment is conditioned on the employee entering into a non-compete agreement. Non-compete agreements entered into, renewed or extended on or after October 1, 2013 are void unless such employee review period is provided.

The act concerning access to personnel files takes effect October 1, 2013. The act concerning non-compete agreements awaits the Governor’s signature and, if signed into law, also takes effect October 1, 2013.

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