Non-compete agreements have become common in many industries, but that doesn’t mean they’re always valid or fair. If you’ve been asked to sign one, or if you’re leaving a job and wondering what restrictions might follow you, it’s important to understand your rights. In Connecticut, these agreements must meet specific legal standards to hold up in court. And in many cases, they don’t.
What Is a Non-Compete Agreement?
A non-compete agreement is a contract between an employer and an employee that restricts the employee from working for a competitor or starting a competing business for a certain period after leaving the company. These agreements typically include:
- A duration (e.g., one or two years)
- A geographic scope (e.g., within a certain city, state, or region)
- A description of the type of work or industry that is off-limits
Employers use non-competes to protect things like trade secrets, client relationships, or proprietary business strategies. But just because an employer includes one in an offer letter doesn’t make it legally binding.
In Connecticut, courts look at five factors when deciding whether to enforce a non-compete agreement:
- Whether the agreement protects a legitimate business interest
- Whether the time and geographic restrictions are reasonable
- Whether it fairly balances the employer’s need for protection with the employee’s right to work
- Whether it harms the public interest
- Whether it was supported by adequate consideration (something of value in exchange for the agreement)
If any one of these factors fails, the court can refuse to enforce the agreement, either in full or in part.
What Makes a Non-Compete Enforceable in Connecticut?
To be enforceable, a non-compete must be reasonable. Connecticut courts don’t apply a one-size-fits-all rule—they look at each agreement in context. Here’s what that means in practice:
- The Employer Must Have a Legitimate Business Reason: Courts will uphold a non-compete if it protects real business interests—like trade secrets, confidential information, or client goodwill. But they won’t enforce it simply to stop fair competition. If the employer can’t show a legitimate reason, the agreement likely won’t stand.
- The Restrictions Must Be Narrow in Time and Geography: A five-year restriction that covers the entire country is not going to hold up. In most cases, Connecticut courts are comfortable with one- or two-year limits and geographic restrictions that match where the business operates. Anything broader gets scrutinized.
- The Agreement Must Not Be Overly Harmful to the Employee: If the non-compete effectively prevents you from working in your chosen field, that’s a problem. The court will weigh the hardship the agreement imposes on you against the benefit it provides your former employer. If the restriction forces you to move, change industries, or lose your livelihood, it may be deemed unreasonable.
- The Agreement Cannot Harm the Public Interest: This comes up most often in industries where public access is important—like medicine, law, or technology. Courts won’t uphold non-competes that prevent skilled professionals from serving the public or stifle innovation and competition.
- The Agreement Must Be Supported by Consideration: This is often misunderstood. Consideration means you must receive something of value in exchange for agreeing to the non-compete. If you sign it at the time of hire, the job offer itself counts. But if your employer springs it on you after you’ve already started work, employees can argue that they need to give you something additional—like a promotion, raise, or bonus—for it to be valid.
What to Do If You’re Facing a Non-Compete
Whether you're being asked to sign a non-compete or you're preparing to leave a job that already has one in place, you don’t have to navigate it alone. These agreements are enforceable only under specific conditions—and many of them fall short under legal scrutiny.
Here’s what you can do if a non-compete is affecting your ability to take a new job or start your own business:
- Review the agreement carefully. Don’t assume it’s enforceable just because it’s in writing. Look for overly broad terms, vague language, or lack of consideration.
- Understand what it actually restricts. Some agreements are written in a way that makes them seem more limiting than they really are. A review by a legal professional can help clarify what the language means and how it might be enforced.
- Ask questions before signing. If you’re starting a new job and the employer includes a non-compete in the offer, don’t be afraid to push back. You can ask for revisions, limitations, or even for the clause to be removed entirely. Employers often expect negotiation at this stage.
- Get legal advice before making a move. If you're leaving a job and worried about a non-compete, don’t wait until your new employer gets a cease-and-desist letter. Talk to a lawyer early to understand your options and potential risks, especially if it’s part of a severance agreement.
Sometimes, a well-crafted response letter can defuse the situation without ever going to court. In other cases, your attorney may recommend filing a declaratory judgment action to have the court rule on whether the agreement is enforceable.
Keep in mind that even if a non-compete is technically enforceable, your former employer still has to prove that you violated it and that it caused them harm. That’s not always easy. And some companies will try to intimidate former employees with threats they don’t follow through on. Having someone in your corner can make a big difference in how you respond and how the situation plays out.
You Don’t Have to Face This Alone
Non-compete agreements can limit your career, your income, and your future—but only if they’re enforceable. At Madsen, Prestley & Parenteau, we’ve spent decades fighting for employees across Connecticut. If you’re dealing with a non-compete that’s standing in your way, reach out today. Contact our legal team online or call us at 860-246-2466 to schedule a consultation. We’ll help you understand your rights and figure out your next move.