AN ACT CONCERNING LIMITATIONS ON THE USE ON NONCOMPETE AGREEMENTS.

House of Representatives
HB5492 / File No. 393 1

General Assembly File No. 393
February Session, 2026 House Bill No. 5492

House of Representatives, April 2, 2026

The Committee on Labor and Public Employees reported
through REP. SANCHEZ, E. of the 24th Dist., Chairperson of
the Committee on the part of the House, that the bill ought to
pass.

AN ACT CONCERNING LIMITATIONS ON THE USE ON
NONCOMPETE AGREEMENTS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

Section 1. (NEW) (Effective October 1, 2026) As used in this section and 1
sections 2 to 6, inclusive, of this act: 2
(1) "Annualized monetary compensation" means (A) wages, 3
commissions, bonuses and equity incentives earned over the course of 4
the prior calendar year, or portion thereof, for which the employee was 5
employed, annualized based on the period of employment and 6
calculated as of (i) the date that enforcement of the covenant not to 7
compete is sought, or (ii) the date of separation from employment, 8
whichever is earlier, and (B) payments made to independent contractors 9
based on services rendered, annualized based on the period during 10
which the independent contractor provided services and calculated as 11
of (i) the date that enforcement of the covenant not to compete is sought, 12
or (ii) the date of separation from employment, whichever is earlier; 13
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(2) "Base salary and benefits" means (A) wages, commissions, 14
bonuses and equity incentives earned by an employee over the course 15
of the prior calendar year, and (B) health insurance benefits and other 16
fringe benefits received by an employee over the course of the prior 17
calendar year; 18
(3) "Covenant not to compete" means a contract, provision or other 19
agreement entered into, amended, extended or renewed on or after 20
October 1, 2026, that, for any period of time after separation from 21
employment, restrains a worker from, or imposes penalties on a worker 22
for, engaging in any lawful profession, occupation, trade, calling or 23
business of any kind in any geographic area of the state. "Covenant not 24
to compete" does not include: 25
(A) A nonsolicitation agreement, provided such agreement (i) does 26
not restrict a worker's activities for more than one year, and (ii) is no 27
more restrictive than necessary in duration, geographic scope, type of 28
work and type of employer; 29
(B) A nondisclosure or confidentiality agreement; 30
(C) A contract, contract provision or other agreement in which an 31
employee agrees to not reapply for employment with an employer after 32
being terminated by such employer; 33
(D) Any covenant not to compete, described in sections 20 -14p, 20-34
670 and 31-50b of the general statutes; or 35
(E) Any contract, contract provision or other agreement made either 36
(i) in anticipation of a sale of the goodwill of a business or all of the 37
seller's ownership interest in a business, or (ii) as part of a partnership 38
or ownership agreement; 39
(4) "Employee" means any individual employed or permitted to work 40
by an employer; 41
(5) "Employer" has the same meaning as provided in section 31 -71a 42
of the general statutes; 43
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(6) "Exclusivity agreement" means a contract, contract provision or 44
other agreement entered into, amended, extended or renewed on or 45
after October 1, 2026, that restrains a worker from, or imposes a penalty 46
on a worker for, (A) being simultaneously employed by the employer 47
and another employer, (B) working as an independent contractor while 48
employed by the employer, or (C) being self-employed while employed 49
by the employer; 50
(7) "Exempt employee" means any employee who is exempt from the 51
minimum wage and overtime requirements of the Fair Labor Standards 52
Act of 1938, as amended from time to time; 53
(8) "Hourly wage" means, (A) for an hourly employee, such 54
employee's wages calculated on an hourly basis, and (B) for any other 55
worker, such worker's annualized monetary compensation converted to 56
an hourly rate by dividing such monetary compensation by two 57
thousand eighty; 58
(9) "Independent contractor" has the same meaning as provided in 59
section 36a-485 of the general statutes; 60
(10) "Legitimate business interest" means an employer's interest in the 61
protection of trade secrets or confidential information that does not 62
qualify as a trade secret or preserving established goodwill with such 63
employer's customers; 64
(11) "Minimum fair wage" has the same meaning as provided in 65
section 31-58 of the general statutes; 66
(12) "Nonsolicitation agreement" means (A) a contract, contract 67
provision or other agreement between an employer and an employee 68
that prohibits, upon separation of employment, such employee from 69
soliciting any (i) employee of such employer to leave the employer, or 70
(ii) customer of such employer to cease or reduce the extent to which 71
such customer is doing business with such employer, or (B) a contract, 72
contract provision or other agreement between an employer and a 73
customer of such employer that prohibits such customer from soliciting 74
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an employee of such employer to cease or reduce the extent to which 75
such employee is doing work with such employer; 76
(13) "Separation from employment" means the date on which an 77
employment relationship terminates between an employer or contractor 78
and a worker; 79
(14) "Wages" has the same meaning as provided in section 31 -58 of 80
the general statutes; and 81
(15) "Worker" means an employee or an independent contractor. 82
Sec. 2. (NEW) (Effective October 1, 2026) (a) A covenant not to compete 83
shall be void and unenforceable against a worker if (1) such worker is 84
(A) an employee whose hourly wage is less than two times the 85
minimum fair wage, or (B) an independent contractor whose hourly 86
wage is less than five times the minimum fair wage, or (2) such covenant 87
not to compete applies to (A) geographic areas in which a worker 88
neither provided services nor had a material presence or influence 89
during the two years prior to such worker's separation from 90
employment, or (B) types of work that the worker did not perform 91
during the two years prior to such worker's separation from 92
employment. 93
(b) A covenant not to compete may be enforceable against a worker 94
if such worker is (1) an employee whose hourly wage is two times or 95
more than the minimum fair wage, or (2) an independent contractor 96
whose hourly wage is five times or more than the minimum fair wage, 97
provided the following conditions are met: 98
(A) The covenant not to compete restricts such worker's competitive 99
activities for a period of not more than one year following the separation 100
from employment, except a covenant not to compete may be enforceable 101
for a period not to exceed two years following the separation from 102
employment if such covenant not to compete is part of an agreement in 103
which the worker is compensated with such worker's base salary and 104
benefits for the entire duration of such covenant not to compete; 105
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(B) The covenant not to compete is necessary to protect a legitimate 106
business interest of the employer, provided (i) such legitimate business 107
interest could not reasonably be protected by less restrictive means, 108
including, but not limited to, a nondisclosure agreement, a 109
nonsolicitation agreement or reliance on the protections provided by the 110
provisions of chapter 625 of the general statutes, and (ii) the covenant 111
not to compete is no more restrictive than necessary to protect such 112
legitimate business interest in terms of the duration, geographic scope, 113
type of work and type of employer of the covenant not to compete; 114
(C) The worker subject to the covenant not to compete is an exempt 115
employee; 116
(D) A written copy of the covenant not to compete is provided to the 117
worker not later than five business days prior to (i) the worker's 118
deadline to accept an offer of employment, or enter into an independent 119
contractor relationship, or (ii) the date the covenant not to compete is 120
signed, whichever is earlier, and such written copy includes a statement 121
of the worker's rights that contains the following: 122
(I) Not all covenants not to compete are enforceable against a worker; 123
(II) A covenant not to compete for a worker whose hourly wage is 124
less than the amount described in subsection (a) of this section is not 125
enforceable; and 126
(III) A worker has the right to consult with counsel prior to signing a 127
covenant not to compete; 128
(E) The covenant not to compete is signed by the worker and the 129
employer or contractor separately from any other agreement 130
establishing the relationship between the worker and the employer or 131
contractor; 132
(F) If the covenant not to compete is added to an existing employment 133
or independent contractor agreement, such covenant not to compete is 134
supported by sufficient consideration and is not the sole basis of the 135
continuation of such employment or contract relationship; 136
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(G) The employment or contract relationship was not terminated by 137
the worker for good cause attributable to the employer or contractor; 138
(H) The covenant not to compete does not require a worker to submit 139
to adjudication in a forum outside of this state or otherwise deprive such 140
worker of the protections or benefits of this section; and 141
(I) The covenant not to compete is consistent with the provisions of 142
this section and other laws of this state. 143
Sec. 3. (NEW) (Effective October 1, 2026) (a) No employer or contractor 144
shall request or require a worker to sign or agree to an exclusivity 145
agreement unless: 146
(1) The worker is (A) an exempt employee whose hourly wage is 147
more than two times the minimum fair wage, or (B) an independent 148
contractor whose hourly wage is more than five times the minimum fair 149
wage; or 150
(2) The worker's additional employment, self -employment or work 151
as an independent contractor would (A) imperil the safety of such 152
worker, such worker's coworkers or the public, or (B) substantially 153
interfere with the reasonable and normal scheduling expectations for 154
such worker. On -call shift scheduling shall not be considered a 155
reasonable scheduling expectation for the purposes of this subdivision. 156
(b) Nothing in this section shall be construed to alter any obligations 157
of a worker to an employer under existing law, including, but not 158
limited to, the common law duty of loyalty, laws preventing conflicts of 159
interest and any corresponding policies addressing such obligations. 160
Sec. 4. (NEW) ( Effective October 1, 2026 ) (a) No court shall modify a 161
covenant not to compete or an exclusivity agreement that violates the 162
provisions of section 2 or 3 of this act for the purposes of enforcing such 163
covenant not to compete or exclusivity agreement. 164
(b) If a covenant not to compete or an exclusivity agreement is held 165
unenforceable by a court under section 2 or 3 of this act, any severable 166
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provision of a contract or other agreement unrelated to such covenant 167
not to compete shall remain in full force and effect, including, but not 168
limited to, any provisions that require the payment of damages 169
resulting from any injury suffered by separation from employment. 170
(c) The party seeking to enforce a covenant not to compete or an 171
exclusivity agreement against a worker shall have the burden of proof 172
in any enforcement proceeding for such covenant not to compete or 173
exclusivity agreement. 174
(d) The party required to compensate a worker in an agreement in 175
which a worker is compensated with such worker's base salary and 176
benefits for the entire duration of the covenant not to compete shall have 177
the burden of proof in any proceeding to cease compensating such 178
worker. 179
Sec. 5. (NEW) (Effective October 1, 2026) (a) Any worker aggrieved by 180
a violation of the provisions of section 2 or 3 of this act may bring a civil 181
action in the superior court for the judicial district where the violation is 182
alleged to have occurred to recover damages, civil penalties and such 183
equitable and injunctive relief as the court deems appropriate. Any 184
person who prevails in such civil action may be awarded reasonable 185
costs and attorney's fees to be taxed by the court. 186
(b) In any such action if the court finds that a covenant not to compete 187
or an exclusivity agreement is in violation of section 2 or 3 of this act, 188
the court may assess a civil penalty against the violator in an amount 189
not exceeding five thousand dollars. 190
Sec. 6. (NEW) (Effective October 1, 2026) (a) The Attorney General may 191
investigate, intervene or bring a civil action in the name of the state, 192
seeking injunctive or declaratory relief, damages and any other relief 193
that may be available under law, whenever any employer or contractor 194
is or has engaged in a practice or pattern of conduct that: 195
(1) Subjects, or causes to be subjected, workers to a covenant not to 196
compete that is in violation of section 2 of this act; or 197
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(2) Subjects, or causes to be subjected, workers to an exclusivity 198
agreement that is in violation of section 3 of this act. 199
(b) In conducting any investigation under this section, the Attorney 200
General may issue subpoenas and interrogatories, and otherwise gather 201
information, in the same manner and to the same extent as is provided 202
in section 35 -42 of the general statutes. No information obtained 203
pursuant to the provisions of this subsection may be used in a criminal 204
proceeding. 205
(c) If the Attorney General prevails in a civil action brought pursuant 206
to this section, the court shall order the distribution of any award of 207
damages to the injured worker. The court may also award civil penalties 208
against each defendant in an amount not exceeding five thousand 209
dollars. No employer or contractor, officer or agent that is found to have 210
violated the provisions of section 2 or 3 of this act shall be liable for an 211
additional penalty under section 31-69 of the general statutes. 212
(d) In lieu of bringing a civil action under this section, the Attorney 213
General may accept an assurance of the discontinuance of any alleged 214
unlawful practice from any employer engaged in such practice. 215
Thereafter, any evidence of a violation of such assurance shall constitute 216
prima facie proof of a violation of the applicable law in any action 217
commenced by the Attorney General. 218
(e) Nothing in this section shall permit the Attorney General to bring 219
an action that would otherwise be barred under the applicable statute 220
of limitations. 221
(f) The Attorney General shall post on the Attorney General's Internet 222
web site information on how to file a complaint with the Attorney 223
General for an alleged violation of section 2 or 3 of this act. 224
(g) Nothing in this section shall permit the Attorney General to assert 225
any claim against a state agency or a state officer or state employee in 226
such officer's or employee's official capacity, regarding actions or 227
omissions of such state agency, state officer or state employee. If the 228
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Attorney General determines that a state officer or state employee is not 229
entitled to indemnification under section 5-141d of the general statutes, 230
the Attorney General may, as it relates to such officer or employee, take 231
any action authorized under this section. 232
Sec. 7. Section 31 -50a of the general statutes is repealed and the 233
following is substituted in lieu thereof (Effective October 1, 2026): 234
(a) No employer may require any person employed in the 235
classification 339032 of the standard occupational classification system 236
of the Bureau of Labor Statistics of the United States Department of 237
Labor to enter into an agreement prohibiting such person from engaging 238
in the same or a similar job, at the same location at which the employer 239
employs such person, for another employer or as a self -employed 240
person, unless the employer proves that such person has obtained trade 241
secrets, as defined in subsection (d) of section 35-51, of the employer. 242
(b) (1) Any person who is aggrieved by a violation of this section may 243
bring a civil action in the Superior Court to recover damages and for 244
such injunctive and equitable relief as the court deems appropriate. 245
(2) The Labor Commissioner may request the Attorney General to 246
bring an action in the superior court for the judicial district of Hartford 247
for restitution on behalf of any person injured by any violation of this 248
section and for such injunctive or equitable relief as the court deems 249
appropriate. 250
(c) The provisions of this section shall apply to agreements entered 251
into, renewed or extended on or after October 1, 2007 , and before 252
October 1, 2026. 253
This act shall take effect as follows and shall amend the following
sections:

Section 1 October 1, 2026 New section
Sec. 2 October 1, 2026 New section
Sec. 3 October 1, 2026 New section
Sec. 4 October 1, 2026 New section
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Sec. 5 October 1, 2026 New section
Sec. 6 October 1, 2026 New section
Sec. 7 October 1, 2026 31-50a

LAB Joint Favorable

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The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of
the General Assembly, solely for purposes of information, summarization and explanation and do not
represent the intent of the General Assembly or either chamber thereof for any purpose. In general,
fiscal impacts are based upon a variety of informational sources, including the analyst’s professional
knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final
products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note

State Impact:
Agency Affected Fund-Effect FY 27 $ FY 28 $
Resources of the General Fund GF - Potential
Revenue Gain
See Below See Below
Note: GF=General Fund
Municipal Impact: None
Explanation
The bill, which sets limits on the use of noncompete agreements in
employment contracts and allows workers and the Attorney General to
bring an action in Superior Court over alleged violations, results in a
potential revenue gain to the General Fund to the extent that the court
assesses a civil penalty because of such an action.1
There is no fiscal impact to the Office of the Attorney General, as they
have the resources and expertise to meet the requirements of the bill.
The court system disposes of over 250,000 cases annually and the
number of cases is not anticipated to be great enough to need additional
resources.
Finally, the bill has no cost impact to the state or municipalities as
employers. To the extent that either the state or municipalities enter into
noncompete contracts with their employees, the bill is not anticipated to
change the cost of any such contract.

1 Under the bill, courts may assess civil penalties of up to $5,000 for each defendant
found liable. Violators are not liable to the Labor Department for any additional civil
penalties imposed under the state's wage laws.
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The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to the number of civil penalties assessed.

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OLR Bill Analysis
HB 5492

AN ACT CONCERNING LIMITATIONS ON THE USE ON
NONCOMPETE AGREEMENTS.

SUMMARY
This bill limits the use of covenants not to compete (non -compete
agreements) and exclusivity agreements entered into or amended on or
after October 1, 2026.
It makes non-compete agreements unenforceable against employees
who earn less than twice the minimum wage and independent
contractors who earn less than five times the minimum wage. For
workers (employees and independent contractors) who earn more than
those wage thres holds, the bill specifies various conditions and
requirements that limit when non -compete agreements may be
enforced. Under the bill, an “independent contractor” is someone (a)
retained on a basis where the y are not anyone’s employee for the
services they provide and (b) whose compensation must be reported on
an I.R.S. Form 1099 issued by the retaining person.
The bill also prohibits employers from asking or requiring workers to
sign or agree to an exclusivity agreement unless (1) they earn more than
its wage thresholds or (2) their additional employment, self -
employment, or work as an independent contractor mee ts certain
requirements.
The bill prohibits the courts from modifying a prohibited non -
compete or exclusivity agreement in a way that will allow it to be
enforced, but it also allows the prohibited provisions to be severable
from other provisions.
It allows (1) workers aggrieved by a violation to bring a civil action
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for damages and equitable and injunctive relief in Superior Court and
(2) the court to assess civil penalties of up to $5,000 against violators. It
also allows the attorney general (AG) to investigate and bring a civil
action in the name of the state when an employer engages in a pattern
of conduct that subjects workers to a non -compete or exclusivity
agreement prohibited by the bill.
Lastly, the bill makes a conforming change to a law that currently
prohibits using certain non-compete agreements for security guards, by
limiting the law’s applicability to agreements entered into, renewed, or
extended before the bill becomes effective (§ 7).
EFFECTIVE DATE: October 1, 2026
NON-COMPETE AGREEMENTS
Under the bill, a “covenant not to compete” is a contract, provision,
or other agreement entered into on or after October 1, 2026, that, for any
period after a worker leaves employment, restrains or imposes penalties
on them for engaging in a lawful profession, occupation, trade, calling,
or business in the state.
The bill specifies that a covenant not to compete is not:
1. a non-solicitation agreement, as long as it does not restrict the
worker’s activities for more than one year and is no more
restrictive than needed in duration, geographic scope, type of
work, and type of employer;
2. a non-disclosure or confidentiality agreement;
3. a contract, provision, or agreement where an employee agrees to
not reapply for employment with an employer who terminated
him or her;
4. any one of certain non -compete agreements that are already
regulated under current law (for physicians; people who provide
companion, home health, or homemaker services; and broadcast
employees); or
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5. a contract, provision, or agreement made (a) anticipating a sale
of the goodwill of a business or all of the seller’s ownership
interest in a business or (b) as part of a partnership or ownership
agreement.
A “non-solicitation agreement” is an employer’s contract, provision,
or agreement with:
1. an employee that prohibits the employee, after leaving
employment, from soliciting (a) another employee to leave the
employer or (b) a customer to cease or reduce its business with
the employer or
2. a customer that prohibits the customer from soliciting the
employer’s employee to cease or reduce its work for the
employer.
Unenforceable Non-compete Agreements
The bill makes a covenant not to compete void and unenforceable
against a worker if:
1. the worker is an (a) employee with an hourly wage less than
twice the minimum wage or (b) independent contractor with an
hourly wage less than five times the minimum wage or
2. it applies to (a) geographic areas where the worker neither
provided services nor had a material presence or influence over
the two years before separating from employment or (b) types of
work that the worker did not do over the two years before
separating from employment.
Determining Wage Thresholds. For determining the wage
threshold for workers who are not paid on an hourly basis (such as
salaried employees and independent contractors), the bill requires a
worker’s “hourly wages” to be his or her annualized monetary
compensation converted to an hour ly rate by dividing it by 2,080 (the
number of work-hours in 52, 40-hour weeks).
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Under the bill, a worker’s “annualized monetary compensation” is
their wages, commissions, bonuses, and equity incentives earned (or for
independent contractors, payments made for services rendered) over
the prior calendar year or portion of it, annualized based on the period
of employment and calculated as of the date (1) the covenant not to
compete is sought or (2) of the separation from employment, whichever
is earlier.
Enforceable Non-compete Agreements
The bill allows a covenant not to compete to be enforced against a
worker with wages that meet or exceed the bill’s thresholds (twice the
minimum wage for employees or five times the minimum wage for
independent contractors) if it meets all of the following conditions.
Duration. It can last for no more than one year after the worker’s
separation from employment. However, it may be enforced for up to
two years if it is part of an agreement that compensates the worker with
his or her base salary and benefits for its duration. “Base salary and
benefits” includes an employee’s earned wages, commissions, bonuses,
and equity incentives over the prior calendar year, plus health insurance
benefits and other fringe benefits.
Necessity. It must be needed to protect the employer’s legitimate
business interest, as long as (1) the interest could not be protected in a
less restrictive way, such as through a non-disclosure or non-solicitation
agreement or under the state’s uniform trade secrets law, and (2) it is no
more restrictive than needed in terms of its duration, geographic scope,
and type of work and employer. Under the bill, a “legitimate business
interest” is an employer’s interest in protecting trade secrets or
confidential information, or preserving established goodwill with its
customers.
Type of Worker. The worker covered by it must be exempt from the
federal Fair Labor Standards Act’s minimum wage and overtime
requirements (for example, executive, administrative, and professional
employees who meet certain criteria).
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Copy & Notice. The worker must receive a copy of the covenant at
least five business days before (1) the deadline to accept an employment
offer or independent contractor relationship or (2) it is signed,
whichever is earlier. The copy must include a statement that:
1. not all non-compete agreements are enforceable,
2. non-compete agreements for workers who earn less than the
bill’s wage thresholds are illegal, and
3. the worker has a right to consult with counsel before signing it.
Execution. It must be signed by the worker or contractor and
employer separately from any other agreement establishing the
relationship between them.
Extra Consideration. If it is added to an existing employment or
independent contractor contract, it must be supported by sufficient
consideration and cannot be the only basis for continuing the
employment or contract relationship.
Terminations for Good Cause. The employment or contract
relationship cannot have been terminated by the worker for good cause
attributable to the employer or contractor.
Adjudication. The covenant must not require a worker to submit to
adjudication in a forum outside of Connecticut or otherwise deprive the
worker of the bill’s protections or benefits.
Legality. It must be consistent with the bill and other state laws.
EXCLUSIVITY AGREEMENTS
The bill prohibits employers from asking or requiring workers to sign
or agree to an exclusivity agreement unless (1) they earn more than the
bill’s wage thresholds or (2) their additional employment, self -
employment, or work as an independent contractor w ould (a) imperil
the safety of the worker, their coworkers, or the public or (b)
substantially interfere with reasonable and normal scheduling
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expectations for the worker. (On-call shift scheduling is not considered
a reasonable scheduling expectation for this purpose.)
Under the bill, an “exclusivity agreement” is a contract, provision, or
agreement entered into, extended, or renewed on or after October 1,
2026, that restrains a worker from, or imposes a penalty on a worker for,
(1) being simultaneously employed by two d ifferent employers , (2)
working as an independent contractor while employed by an employer,
or (3) being self-employed while employed by an employer.
The bill specifies that it does not alter any of the worker’s legal
obligations to the employer, including the common law duty of loyalty,
laws preventing conflicts of interest, and any corresponding policies
about these obligations.
COURT LIMITATIONS
The bill prohibits the courts from modifying a prohibited non -
compete or exclusivity agreement to enforce it. However, under the bill,
if a court finds a non -compete or exclusivity agreement unenforceable,
any other severable provisions of it must remain in full force and effect,
including any provisions that require payment of damages due to injury
suffered by separation from employment.
For any proceeding to enforce a non -compete or exclusivity
agreement, the bill places the burden of proof on the party seeking to
enforce the agreement against the worker. And in cases where an
employer agreed to compensate a worker with their base salary and
benefits for the non -compete agreement’s duration, the party that
agreed to pay the worker has the burden of proof in proceedings to stop
paying the worker.
CIVIL ACTIONS
The bill allows a worker aggrieved by a violation of its provisions on
non-compete and exclusivity agreements to bring a civil action for
damages, civil penalties, and equitable and injunctive relief in the
Superior Court for the judicial district where the violation is alleged to
have occurred.
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If a court finds a non -compete or exclusivity agreement in violation
of the bill’s provisions, the bill allows the court to assess a civil penalty
of up to $5,000 on the violator. It also allows the court to award the
prevailing party reasonable costs and attorney’s fees.
ATTORNEY GENERAL ACTIONS
Whenever an employer or contractor is or has engaged in a practice
or pattern of conduct that subjects workers (or causes them to be
subjected) to a non-compete or exclusivity agreement prohibited by the
bill, the bill allows the AG to investigate, intervene, or bring a civil action
in the name of the state for injunctive or declaratory relief, damages, and
any other relief available under law. It allows the AG to issue subpoenas
and interrogatories, and gather information in the same way and to the
same extent as he may under the state’s anti -trust law. No information
obtained in these investigations may be used in a criminal proceeding.
If the AG prevails in the action, the bill requires the court to distribute
any damages awarded to the injured worker. The court may also award
civil penalties of up to $5,000 against each defendant. But an employer
or contractor, officer, or agent found i n violation of the bill cannot also
be liable for an additional penalty under the state law on retaliation over
wage complaints.
The bill also allows the AG, instead of bringing a civil action, to accept
an employer’s assurance that it will stop any alleged unlawful practice.
After that, any evidence of a violation of this assurance becomes prima
facie proof of a violation of the ap plicable law in any action the AG
takes.
The bill specifies that nothing in its enforcement provisions allows
the AG to bring an action that would otherwise be barred under the
applicable statute of limitations.
Lastly, the bill specifies that it does not authorize the AG to assert any
claim against a state agency, or state officer or employee in their official
capacity, over their actions or omissions. However, if the AG determines
that a state officer or employe e is not entitled to the indemnification
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provided by state law (for example, due to their wanton, reckless, or
malicious actions), he can take any action authorized under the bill.
COMMITTEE ACTION
Labor and Public Employees Committee
Joint Favorable
Yea 9 Nay 4 (03/19/2026)