Changes to Physician Non-Compete Agreements in Connecticut

Connecticut has passed Senate Bill 9, titled “An Act Concerning Health and Wellness for Connecticut Residents.” The Act is designed to equalize access to physical, mental and behavioral health care in the state and to strengthen the state’s response to the fentanyl and opioid epidemic.

This bill amends Connecticut’s current legislation, CT Gen Stat § 20-14p, which was passed back in 2016 to regulate and define the conditions under which non-compete agreements can be enforced in contracts or agreements involving physicians.

The amended law protects physicians from restrictive non-compete agreements, particularly concerning changes to compensation terms. Key additions of the new law include the following:

  1. Physicians are required to agree to proposed material changes in compensation terms for a covenant not to compete to be enforceable. 
  2. A non-compete agreement will not be enforceable if the employment or contractual relationship is terminated by the employer, unless there is a justifiable reason for termination. 
  3. Note that these changes do not apply to a group practice consisting of no more than 35 physicians with a majority ownership of physicians. 

The amended law specifies that it applies to non-compete agreements entered into, amended, extended, or renewed on or after October 1, 2023.