Four Connecticut Bills That Could Impact Employer Operations in 2026

Takeaways

• Connecticut lawmakers are advancing bills on workplace practices that could affect employers’ operations and compliance.
• One proposal would impose strict requirements on employers’ use of automated decision systems, including bias audits, disclosures, and opt‑out rights for applicants.
• Another bill targets predictive scheduling, requiring advance notice of work schedules, premium pay for changes, and limits on employee hours.

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• Connecticut General Assembly

Article

The Connecticut legislature’s current session is scheduled to adjourn May 6, 2026. Several labor and employment bills under consideration could affect employers’ operations and compliance obligations.

“An Act Concerning Automated Decision Systems Protections For Employees” (2026-SB00435)

This bill would regulate computational processes that make, assist in making, or are used in the course of making an employment-related decision (“automated processes”). If the bill is passed, employers would have to conduct bias audits on automated processes within one year prior to deploying the automated process. A report on the bias audit would need to be filed with the labor commissioner. If a bias audit reveals any disparate impact caused by the automated process, the bill would prohibit its use unless the employer demonstrates business necessity and implements corrective actions approved by the labor commissioner.

The bill would also require an employer to provide notice to job applicants that an automated process is being used, the purpose of the automated process, and the nature of the employment-related decision for which it is being used. The notice would also need to include the right to opt out of the processing of personal data.

Lastly, employers would be required to provide applicants with certain disclosures if it makes a decision adverse to the applicant with assistance from an automated process.

“An Act Concerning Limitations On The Use On Noncompete Agreements” (2026-HB5492)

The legislature is attempting, once again, to limit the use of non-competes. The proposal would prohibit non-competes with employees who earn less than two times the minimum wage or independent contractors whose hourly wage is less than five times the minimum wage. It would also restrict non-competes from applying to geographic areas in which a worker did not provide services or have a material presence during the last two years of their employment. Furthermore, a covenant not to compete would be void if it applies to types of work that the worker did not perform within two years prior to their separation from employment.

The bill provides several other requirements for a covenant not to compete to potentially be enforceable. It would also regulate exclusivity agreements. While employed by the employer, an employee may not (1) be an employee of another employer, (2) be an independent contractor, or (3) be self-employed.

“An Act Concerning Limitations on The Use of Nondisclosure Agreements” (2026-SB00355)

In the wake of the “Me Too” movement, the legislature attempted to restrict the use of nondisclosure agreements. The bill would modify section 46a-60 of the General Statutes to make it unlawful for an employer to refuse to employ a prospective employee or hire an independent contractor because the employee or independent contractor disclosed conduct believed to constitute a discriminatory employment practice. It also provides that an employer may not require an employee or independent contractor to sign an agreement that prohibits disclosure of the employer’s conduct that the employee or independent contractor reasonably believes to be a discriminatory employment practice.

The bill would void any agreement that prohibits an employee or volunteer from disclosing or discussing conduct they reasonably believe to be discriminatory, harassing, or retaliatory. These restrictions would also apply to confidentiality provisions in settlement agreements.

“An Act Concerning Advanced Notice Of An Employee’s Work Schedule By An Employer” (2026-SB00436)

Predictive scheduling continues to be an area of focus. The proposed legislation would apply to employees in retail, food services, or hospitality establishments and nursing assistants or orderlies at long-term healthcare services establishments. It would require employers to provide employees at the start of their employment with a good faith written estimate of the employee’s anticipated work schedule.

The bill would further require employers to provide employees with 14 days’ advanced written notice prior to the first date of any work schedule. It also contains notice requirements if an employer wants to change an employee’s shift, as well as requirements to provide employees with additional pay if the employer changes an employee’s hours without adhering to the notice requirements.

The bill would also limit the hours an employer is allowed to require an employee to work, such as the first 11 hours following a shift. In addition, it would require hours to be offered to employees before the employer seeks new employees through an external hiring pool.

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Jackson Lewis attorneys will continue to monitor the legislative session and are available to assist employers in addressing how their businesses may be affected by any new legislation.