After more than a year of contention and litigation, the Federal Trade Commission (FTC) announced that it would discontinue appeals of court rulings that struck down its nationwide rule banning noncompete agreements for employees. As a result, the regulation of noncompetes has reverted to the jurisdiction of the states. Connecticut law generally enforces such agreements subject to a test for reasonableness.

Shortly after the FTC announced its sweeping ban in early 2024, several business and employer groups challenged it in federal courts. Multiple court decisions struck down the rule, holding that the agency had exceeded its authority. The FTC lodged appeals, but on September 3, 2025, it announced it would not pursue them. Instead, the agency said it would shift toward “targeted enforcement” under existing antitrust laws, leaving the broader validity of noncompetes to the states.

Connecticut courts have long recognized noncompete agreements as valid contractual tools, provided that they meet certain conditions grounded in fairness, balance and necessity. A Connecticut court will enforce a noncompete agreement only if it is reasonable as determined by this five-point test:

1. Length of restriction — The temporal duration must be reasonable. Restrictions lasting one or two years are typically viewed as acceptable, whereas substantially longer periods may be scrutinized.

2. Geographic limitation — The agreement must limit the geographic area to what is necessary to protect the employer’s business, such as a specific city or region rather than the entire country.

3. Interference with public interest — The agreement must not run counter to public policy or significantly inhibit employment opportunities within a profession.

4. Protection of legitimate business interest — There must be a real business justification for the restriction, such as protection of trade secrets, customer relationships or goodwill.

5. Fairness to employee — The noncompete should not impose undue hardship on the departing employee by preventing them from earning a livelihood in their field of expertise.

Judges in Connecticut scrutinize noncompete agreements for reasonableness and will often rewrite or “blue-pencil” overly broad restrictions to render them enforceable. Connecticut has also enacted specific legislative limits for certain professions, including broadcast employees and security guards, further reducing the reach of noncompetes in those industries.

Disputes over enforceability are resolved on a case-by-case basis. An experienced Connecticut employment attorney can advise you about whether a non-compete agreement you are being asked to signed is likely to be enforceable.

Gesmonde, Pietrosimone & Sgrignari, L.L.C. in East Haven or Hamden represents employees in the full range of Connecticut employment law matters. Call 203-745-0942 or contact us online for a consultation.