Non-compete Verified

Connecticut stay-or-pay promissory note ban extended to all employers

Jurisdiction
Connecticut
Effective date
2026-10-01
Who it covers
All employers (previously 26+)
Status
Verified against an official source

The law, summarized

  • From Oct 1, 2026, Connecticut's ban on employment promissory notes applies to all employers (previously 26+ employees).
  • Employers may not require employees to sign notes requiring repayment, including for training, if they leave before a set time.
  • Exceptions include repaying advances, property sold or leased to the employee, sabbatical terms and union-negotiated programs.
  • A separate 2026 law allows notes to repay federal H-1B visa fees (PA 26-122).
StateHR Take · AI-generated analysis, not legal advice

Who should act: All employers (previously 26+) with workers in Connecticut. Review offer letters, noncompete, repayment and training agreements against this change now (in effect since 2026-10-01), and plan any required employee notices. Confirm the details in the official source before acting.

Generated 2026-10-15T18:41-05:00

Official sources