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ARTICLE · 22 FEBRUARY 2023

States Continue To Target Restrictive Covenants

Ogletree, Deakins, Nash, Smoak & Stewart
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Connecticut, Indiana, New York, Rhode Island, and Utah are among the latest states to propose further limitations on the use of post-employment restrictive covenants. Connecticut's House Bill (HB) 6594...

United StatesEmployment and HR
Justin A. Allen
Justin A. Allen
Byrin A. Romney
Byrin A. Romney
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Connecticut, Indiana, New York, Rhode Island, and Utah are among the latest states to propose further limitations on the use of post-employment restrictive covenants. Connecticut's House Bill (HB) 6594 and New York's Senate Bill (S) 3100 would prohibit the use of noncompetes with a wide swath of employees and independent contractors. Indiana's Senate Bill (SB) 7, Rhode Island's House Bill (H) 5284, and Utah's Senate Bill (SB) 170 are more narrow and would only prohibit the use of noncompetes for certain medical professionals.

Connecticut

Connecticut's HB 6594, titled, "An Act Concerning Noncompete Agreements," was introduced on February 2, 2023, and is currently pending committee review. The bill would make unenforceable any noncompete entered into, amended, extended, or renewed on or after July 1, 2023, unless the noncompete meets eleven distinct requirements:

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