The bill, identified as Substitute Senate Bill No. 21 with File No. 461, aims to prohibit all employers from requiring an employment promissory note as a condition of employment. The bill amends Section 31-51r of the general statutes by removing the limitation that previously applied only to employers with 26 or more employees, thereby expanding the prohibition to include all employers, regardless of their size. An employment promissory note is defined as an agreement that obligates an employee to pay their employer a sum of money if they leave the job before a specified period, which may include reimbursement for training provided. The bill states that such notes are against public policy and are void, but it does not affect other provisions of an employment agreement if the note is part of it. The bill also maintains exceptions for agreements that allow employers to recoup advanced sums, property sales or leases to employees, compliance with sabbatical terms for educational personnel, or agreements part of a collective bargaining program.

The bill is set to be effective from July 1, 2023. It has been reported favorably by the Committee on Labor and Public Employees and has no fiscal impact on the state or municipalities. The bill analysis clarifies that the prohibition on requiring employment promissory notes will now apply to all employers and invalidates any such notes for employers newly covered by the bill, presumably for contracts entered into on or after the effective date. The committee action shows a joint favorable vote of 8 to 4 on March 21, 2023.

Statutes affected:
Committee Bill: 31-51r
LAB Joint Favorable: 31-51r
File No. 461: 31-51r