The bill under consideration, Substitute House Bill No. 5366, pertains to the regulation of covenants not to compete within the home care industry. The bill proposes an amendment to Section 20-681 of the general statutes, which would take effect on July 1, 2024. The current language that states any covenant not to compete is against public policy and shall be void and unenforceable is to be deleted. In its place, the bill introduces a new provision that, except as specified in a new subsection (b), maintains the voiding of such covenants. However, the new subsection (b) creates an exception for homemaker-companion agencies. These agencies would be allowed to contractually restrict their homemaker-companion employees, who have received paid training from the agency, from engaging in private service contracts with the agency's clients. This restriction cannot extend beyond six months following the receipt of paid training by the homemaker-companion.

The bill specifies that the new legal language inserted into the current law is marked by "insertion" and the language to be deleted is marked by "deletion." The bill also includes a statement from the Legislative Commissioners noting a consistency adjustment in Section 1(b). The fiscal impact statement attached to the bill indicates that there is no expected state or municipal fiscal impact from the bill. The bill analysis clarifies that while covenants not to compete are generally void and unenforceable for homemaker-companion agencies, this bill would allow such agencies to limit certain employees from engaging in private service contracts with clients for a maximum of six months after receiving paid training. The bill does not specify the content or duration of the training. The effective date for this act is July 1, 2024.

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