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Connecticut Non-Compete Agreement Template

The Connecticut Non-Compete Agreement Template is ideally used for hiring entities who wish to protect their intellectual property, such as Trade Secrets, but must potentially give a new entity access to such information. While this security concern is most common during the hiring process, one only needs to think of partnerships, obtaining independent contractors, consultations, and factory tools to see how often the topic of security will come up. Why is the dissemination of information such a major security concern? It holds the possibility of an outside entity using a company's information to compete unfairly with that company by capitalizing on materials that would not have been accessed without the Company's confidence in the Recipient. When the Recipient of Confidential Information uses this information to unfairly compete with the Company's products and services or aids the Company's Competitors, then the Company's standing in a competitive market may suffer dramatically.

Therefore, a wise precaution a Company may take to prevent needlessly unfair competition from an ex-employee or contractor is to obtain a written promise from that such information will not be used against the Company's wishes in a damaging manner. The Template provided on this page (available through the buttons presented near the image) will provide this security nicely.

There are no statutes or regulation that governs non-compete agreements in Connecticut. Case law generally governs non-compete agreements in Connecticut. However, this Template will remain in compliance with any Connecticut Statue that may have a bearing on its language.

Restrictions

Non-compete agreements in the security guards are governed by Conn. Gen. Stat. Ann. § 31-50a. Non-compete agreements are restricted against security guards if preventing them from engaging in the same or similar job at the same location where they are employed, for another employer and as a self-employed person.

Non-compete agreements in the broadcast industry are governed by Conn. Gen. Stat. Ann. § 31-50b. Non-compete agreements for broadcasters cannot prevent employees from being employed in a specific geographic for a specific time period after employment is terminated.

Non-compete agreements for physicians are governed Conn. Gen. Stat. Ann. § 20-14p. Non-compete agreements for physicians are only enforceable if it is necessary to protect a legitimate business interest, reasonably limited in time, geographic scope, and practice restrictions, and must be consistent with public policy.

Laws – C.G.S. 31–50a – C.G.S. 31–50b

How to Write

1 – Supply The Introduction With Requested Information

In section 1, the Preparer of this document must begin by entering the name of the Disclosing Entity on the first empty line in "1. Purpose." The second line in this section requires the name of the party who promises any Company Information received will be kept in the strictest of confidence recorded on the second blank line in "1. Purpose."

2 – Detail The Agreed Terms That Should Be Included In This Agreement

The section of this paperwork titled "Non-Compete/Disclosure" presents several checkboxes meant to indicate which actions should be included in the Receiving Party's Promise of Confidentiality and which actions should be excluded. Any checkboxes that are filled in, marked, or checked will have its corresponding statement included in the written promise of the Receiving Party. It would be considered extremely wise to make sure the Recipient will agree to adhere to each marked statement before checking any of these boxes.

The "Business Practices" conducted by the Recipient can be limited and restricted to the first statement if its checkbox is filled in or marked.The type of "Clients/Customers" defined in the second statement will be considered off-limits in the manner described if this checkbox is checked.In many cases, the main concern over the security of Trade Secrets will concern its use for the benefit of a Company's "General Competitors." If this document is to restrict the Recipient's dealings with the Company's peers, the third check box should be selected.Similarly, there may be some concern with the Recipient in relation to the Company's "Specific Competitors." If so, then list the Competitors the Company wishes to restrict the Recipient from dealing with on the blank lines presented in the fourth statement then mark the checkbox to apply the terms of this statement to the Receiving Party's promise.The "Employees" of the concerned Company (past and present) may be considered off-limits to the Recipient as described in this statement if the last checkbox is checked.

3 – This Contract's Life Span Must Be Defined Before It Is Signed

State how long this contract will be in Effect on the blank space in the "Recipient Warrants…" statement of section "3. Time Period."

It will also be crucial to the implementation of this Agreement's power to name when the terms of this contract will begin. Do this by checking either the first or second checkbox after the statement above. If the Recipient will be obligated to this contract as of its Effective Date then, mark the first box. The second box should be selected if these terms do not begin until the Recipient's business with the Company concludes.

4 – The Company Will Need To Indicate If A Purchase Option Should Be Available

"4. Purchase Option" will largely depend upon the regulations within an entity and its own considerations to the Recipient. In some cases, the Receiving Party (of this contract) is offered an option to purchase the ability to continue use of the company information even if it results in competing with the Company's own business. If this option is made available by the entity, the amount to be paid to the entity by the employee must be placed into the lines available in the first statement this section, after checking the appropriate box. If the purchase option is not made available, then the box indicating the requirement of liability must be checked.

5 – Document The Ruling Authority Regarding This Contract

A specific State government must be named as holding Authority regarding this matter. Naturally, this will be the State of Connecticut, but if there are any specific localities where this document will apply as opposed to others, they should be recorded. Document the State of Jurisdiction on the blank space in "5. Jurisdiction."

6 – This Agreement May Only Be Entered When Each Party Signs It

The execution statement, beginning with "In Witness Whereof," in "13. Entire Agreement," contains three empty spaces where the exact Date this contract's terms become Effective will be named. Use this blank space to document the Calendar Day, Month, and Year of Execution. Directly below this statement will be two columns, each requiring items from the parties entering this agreement.

Let us turn our attention to the column on the bottom left-hand corner of this page ("The Company"). The Company Owner or a Signature Party authorized by the Company to represents it sign and print his or her Name on the first and second blank spaces in this area. If the Company's Signature Party holds a Title (i.e. President), this should be recorded on the same line as his or her Printed Name. This area will also demand the Signature Date be presented on the last blank space.

Now, the Recipient will need to satisfy the "Recipient" area in the lower right-hand corner. This area will only be satisfied when the Recipient signs and prints his or her Name on the blank spaces labeled "Signature" and "Print Name." As with the Company's Signature Party, the Signature Date of the Recipient must be supplied by the Recipient on the last blank space in this section.