03/12/2025
March 11, 2025 Labor and Public Employees Committee, HB 7196
Public Hearing Testimony of
Danté Bartolomeo
Commissioner
Department of Labor
Labor and Public Employees Committee
March 11, 2025
Good Morning Senator Kushner, Representative Sanchez, Senator Sampson, Representative Weir and members of the Labor and Public Employees Committee. Thank you for the opportunity to provide you with written testimony regarding HB 7196: AN ACT CONCERNING LIMITATIONS ON THE USE OF NONCOMPETE AGREEMENTS. My name is Danté Bartolomeo, and I am the Commissioner of the Connecticut Department of Labor.
HB 7196 prohibits the use of noncompete agreements and exclusivity agreements unless they meet certain requirements. There is currently no law that prohibits those agreements under the CT Department of Labor’s (CTDOL) jurisdiction other than for broadcasters and security guards. Since HB 7196 greatly expands the universe of employees and employers that would be prohibited from the use of noncompete agreements and exclusivity agreements, this proposal will substantially increase the workload of the Wage and Workplace Standards Division (WWSD). Any new law that is codified in chapters, 557 or 558 of Title 31 requires the agency to have a full understanding of the law and the WWSD’s Wage Agents must be available to answer questions from the public and employers.
Further, if HB 7196 is codified in chapters 557 or 558, it requires the assessment of a civil penalty for any violation of the law. Therefore, this will bring on additional work as well. Both WWSD and the agency’s Legal Division often receive calls from employees asking for advice concerning noncompete agreements. Also, in some cases involving commission payments to employees received by the WWSD, a noncompete is included. Therefore, HB 7196 would greatly increase the number of complaints and resulting investigations required of WWSD. This unit is understaffed for the volume of complaints it receives and for the past three years has carried a caseload of complaints that must wait for ten to twelve months to be assigned to an investigator. Therefore, if HB 7196 moves forward as written, CTDOL will need to assign a significant fiscal impact statement to this bill.
Thank you for the opportunity to provide the Committee with this written testimony. My staff and I are reachable to further discuss HB 7196 by directing any questions you may have to Billy Taylor, Legislative and Administrative Advisor at william.b.taylor@ct.gov or 203-947-4136.
Connecticut Department of Labor • www.ct.gov/dol
An Equal Opportunity/Affirmative Action Employer