Noncompete Agreement Ban is Back on the Agenda in Hartford & Big I CT Testifies in Opposition
Big I CT this week raised concerns with the Connecticut General Assembly Labor and Public Employees Committee regarding legislation that would broadly restrict the use of noncompete agreements.
HB 7196 would prohibit the use of noncompete agreements for employees and independent contractors whose wages are less than three or five times the state minimum wage, respectively. In testimony delivered to the committee, Travis Wattie, AVP of Government Relations, highlighted that independent insurance agencies are unique in that their value is heavily tied to their book of business. He emphasized that restrictive covenants, such as noncompete and nonsolicitation agreements, help protect against former employees siphoning away customers and devaluing the business.
State Senator and Ranking Committee Member Rob Sampson thanked Big I CT for helping to inform the committee.
“Your testimony is invaluable as far as making this issue more clear to my colleagues,” said Senator Sampson.
Sampson, who formerly managed several small independent agencies, noted that an agency could quickly be put out of business if producers left and took their customers with them.
Big I CT will continue to voice concern about the proposal and urge an exception for entities regulated by the Connecticut Insurance Department should the bill be poised to advance out of committee.
Video included below at the 2:52 mark.
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