Connecticut Governor Vetoes Bill Regulating Noncompete Agreements

July 16, 2013 Advisory

On Friday, July 12, Connecticut Governor Malloy vetoed House Bill 6658, An Act Concerning Employer Use of Noncompete Agreements. The bill, addressed in further detail in our advisory of July 2, required that, where there is a merger or acquisition, an employer must provide a written copy of any noncompete agreement to the employee and give the employee a reasonable period of time, but not less than seven calendar days, to consider the merits of entering into the agreement.

The Governor returned House Bill 6658 to the Secretary of State without signature with a short statement noting that the bill left "certain key terms undefined or unclear," and therefore "has the potential to produce legal uncertainty and ambiguity in the event of a merger or acquisition. If signed into law, costly and time-consuming litigation would likely be required to provide necessary clarity." The Governor concluded that "[i]t would be better for both employers and employees to receive greater clarity from the General Assembly on this issue next session."