The bill, Substitute House Bill No. 5366, concerns covenants not to compete in the home care industry. It proposes an amendment to Section 20-681 of the general statutes, which would take effect on July 1, 2024. The amendment introduces a new provision that allows homemaker-companion agencies to contractually limit their employees, specifically those who receive paid training from the agency, from engaging in private service contracts with the agency's clients. However, this limitation cannot extend beyond six months after the employee has received such training. The bill effectively creates an exception to the general rule that covenants not to compete are against public policy and are void and unenforceable.

The bill specifies that the exception applies only to homemaker-companion agencies and their trained employees, and it does not detail the nature or duration of the required training. The bill also includes a statement from the Legislative Commissioners that a phrase was deleted for consistency with the provisions of section 1(a). The fiscal impact statement attached to the bill indicates that there is no expected fiscal impact on the state or municipal governments. The bill analysis clarifies that the bill's provisions are specific to the home care industry and do not apply to other professions, which are addressed in a separate bill. The Human Services Committee reported favorably on the bill with a vote of 19 to 3.

Statutes affected:
Raised Bill: 20-681
HS Joint Favorable: 20-681
File No. 281: 20-681