Recent Changes in Connecticut Law Impact Employee Handbooks and Forms
- By Your mom
- •
- 18 Aug, 2017
Outdated employee handbooks can create legal liabilities and provide incorrect
information to supervisors who depend on them when making important decisions. Over the
past year, legislative measures have changed employer obligations in significant ways. Your
handbook and other relevant forms, such as employment applications, I-9s, and leave forms,
should be modified to reflect these changes.
Ban the Box
Effective January 1, 2017, Connecticut employers may no longer ask about an applicant’s
criminal record, including arrests, criminal charges, and convictions, on an initial employment
application, except when an employer is otherwise required to do so by law, or a security,
fidelity or equivalent bond is required for the position. P.A. 16-83. Employers may inquire
about such matters during a subsequent interview or through supplemental questionnaires
following the initial screening. The new law does not impact existing protections requiring
employers to clearly state that applicants need not divulge prior arrests, charges or convictions
that have been erased. Conn. Gen. Stat. § 31-51i.
The new law does not go as far as the laws of some states that prevent criminal inquires
until after a conditional offer of employment has been made. Prospective employees who
believe the law has been violated may file a complaint with the Connecticut Department of
Labor, but have no private right of action.
Physician Non-Competes
Effective July 1, 2016, employers entering into, or renewing a non-compete with current
physician employees, must comply with tighter durational and geographic scope restrictions.
P.A. 16-95. More specifically, aside from the requirement that any such agreement be tailored to
protect a legitimate business interest, the non-compete restrictions can no longer exceed one
year, or cover a geographic radius of more than 15 miles from the physician’s primary work site.
The “primary work site” is defined as the location where the employee generates the majority of
his/her revenue, or any other location where the doctor practices and the parties have expressly
agreed and defined such site in the non-compete agreement.
A distinction in the law provides greater enforceability where the non-compete is part of
an ownership agreement. In such cases, the agreement is enforceable regardless whether the
termination is voluntary, for cause, without cause, or if the ownership agreement expires without
renewal.
In contrast, if the non-compete is outside an ownership agreement, the non-compete is
only enforceable if the doctor voluntarily quits, or is termed for cause. It is not enforceable if the
doctor is termed without cause, or the employment agreement expires and the employer fails to
offer a renewal of the contract on the same or similar terms. If the employer offers to renew the
contract on the same or similar terms, but the employee declines the offer, the non-compete is
enforceable.
In all instances, the employer has the burden of proof when claiming a violation of a non-
compete agreement.
Bi-Weekly Pay
Effective June 6, 2016, employers are no longer required to seek prior approval from the
Connecticut Department of Labor to move to a bi-weekly payroll period. In the past, such
approval was routinely granted, but required employers to go through the approval process. This
change allows employers to process their payroll 26 times each year, instead of 52, and save
administrative costs associated with payroll processing. P.A. 16-169.
Payroll Cards
Effective October 1, 2016, employers may pay wages through a “payroll card,” provided
the employee has also been given the option of payment by check and direct deposit, and
voluntarily accepts payment by payroll card instead. Payment by payroll card cannot be made a
condition of employment when hiring new employees, nor can any employer costs associated
with the card be passed on to employees. P.A. 16-125.
A “payroll card” is defined as a stored value card used by an employee to access wages
from a payroll card account established at a financial institution by an employer, and that is
redeemable at multiple merchants, service providers, bank branches, or ATMs.
Before instituting a payroll card system, employers must provide employees with a
notice, which can be part of a handbook, stating: use of the card is voluntary and employees may
instead be paid by direct deposit or check; any fees; any terms or conditions for use of the card;
methods available to access wages and avoid or minimize fees; methods to check balances
without incurring fees; and any withdrawal rights.
Some employers may like card payment as it reduces payroll costs. Processing a payroll
check can cost from $2 to $2.50, while loading a card costs around $.50. Also, many low wage
employees who may prefer to not have a checking account can now take advantage of the payroll
card method of payment.
Employers may continue to pay through direct deposit, instead of by check or payroll
card, provided the employee consents to direct deposit. Regardless of the payment method, the
employee must be furnished a record of hours worked, gross earnings, deductions, and net
earnings. This statement may be provided electronically, provided the employee consents.
CT FMLA
Effective June 7, 2016 the Connecticut Family and Medical Leave Act was amended to
closely mirror the federal FMLA’s military exigency leave rights. One difference in the two
laws centers on the length of leave for such reasons. Under federal law the exigency leave is up
to 12 weeks, while the CTFMLA uses the same 16 weeks over a 24-month period applicable for
other forms of leave under the state law. P.A. 16-195.
Connecticut had previously provided leave to care for injured servicemembers, with such
leave limited to 26 weeks during any 12-month period, which is the same benefit provided by the
federal FMLA for similar needs. Any time taken to care for injured service members offsets the
time permitted for other forms of FMLA leave.
New I-9
Effective January 22, 2017, employers are required to use an updated I-9 form, which can
be found here. The new form applies only to new hires and need not be completed by employees
already on the payroll.
information to supervisors who depend on them when making important decisions. Over the
past year, legislative measures have changed employer obligations in significant ways. Your
handbook and other relevant forms, such as employment applications, I-9s, and leave forms,
should be modified to reflect these changes.
Ban the Box
Effective January 1, 2017, Connecticut employers may no longer ask about an applicant’s
criminal record, including arrests, criminal charges, and convictions, on an initial employment
application, except when an employer is otherwise required to do so by law, or a security,
fidelity or equivalent bond is required for the position. P.A. 16-83. Employers may inquire
about such matters during a subsequent interview or through supplemental questionnaires
following the initial screening. The new law does not impact existing protections requiring
employers to clearly state that applicants need not divulge prior arrests, charges or convictions
that have been erased. Conn. Gen. Stat. § 31-51i.
The new law does not go as far as the laws of some states that prevent criminal inquires
until after a conditional offer of employment has been made. Prospective employees who
believe the law has been violated may file a complaint with the Connecticut Department of
Labor, but have no private right of action.
Physician Non-Competes
Effective July 1, 2016, employers entering into, or renewing a non-compete with current
physician employees, must comply with tighter durational and geographic scope restrictions.
P.A. 16-95. More specifically, aside from the requirement that any such agreement be tailored to
protect a legitimate business interest, the non-compete restrictions can no longer exceed one
year, or cover a geographic radius of more than 15 miles from the physician’s primary work site.
The “primary work site” is defined as the location where the employee generates the majority of
his/her revenue, or any other location where the doctor practices and the parties have expressly
agreed and defined such site in the non-compete agreement.
A distinction in the law provides greater enforceability where the non-compete is part of
an ownership agreement. In such cases, the agreement is enforceable regardless whether the
termination is voluntary, for cause, without cause, or if the ownership agreement expires without
renewal.
In contrast, if the non-compete is outside an ownership agreement, the non-compete is
only enforceable if the doctor voluntarily quits, or is termed for cause. It is not enforceable if the
doctor is termed without cause, or the employment agreement expires and the employer fails to
offer a renewal of the contract on the same or similar terms. If the employer offers to renew the
contract on the same or similar terms, but the employee declines the offer, the non-compete is
enforceable.
In all instances, the employer has the burden of proof when claiming a violation of a non-
compete agreement.
Bi-Weekly Pay
Effective June 6, 2016, employers are no longer required to seek prior approval from the
Connecticut Department of Labor to move to a bi-weekly payroll period. In the past, such
approval was routinely granted, but required employers to go through the approval process. This
change allows employers to process their payroll 26 times each year, instead of 52, and save
administrative costs associated with payroll processing. P.A. 16-169.
Payroll Cards
Effective October 1, 2016, employers may pay wages through a “payroll card,” provided
the employee has also been given the option of payment by check and direct deposit, and
voluntarily accepts payment by payroll card instead. Payment by payroll card cannot be made a
condition of employment when hiring new employees, nor can any employer costs associated
with the card be passed on to employees. P.A. 16-125.
A “payroll card” is defined as a stored value card used by an employee to access wages
from a payroll card account established at a financial institution by an employer, and that is
redeemable at multiple merchants, service providers, bank branches, or ATMs.
Before instituting a payroll card system, employers must provide employees with a
notice, which can be part of a handbook, stating: use of the card is voluntary and employees may
instead be paid by direct deposit or check; any fees; any terms or conditions for use of the card;
methods available to access wages and avoid or minimize fees; methods to check balances
without incurring fees; and any withdrawal rights.
Some employers may like card payment as it reduces payroll costs. Processing a payroll
check can cost from $2 to $2.50, while loading a card costs around $.50. Also, many low wage
employees who may prefer to not have a checking account can now take advantage of the payroll
card method of payment.
Employers may continue to pay through direct deposit, instead of by check or payroll
card, provided the employee consents to direct deposit. Regardless of the payment method, the
employee must be furnished a record of hours worked, gross earnings, deductions, and net
earnings. This statement may be provided electronically, provided the employee consents.
CT FMLA
Effective June 7, 2016 the Connecticut Family and Medical Leave Act was amended to
closely mirror the federal FMLA’s military exigency leave rights. One difference in the two
laws centers on the length of leave for such reasons. Under federal law the exigency leave is up
to 12 weeks, while the CTFMLA uses the same 16 weeks over a 24-month period applicable for
other forms of leave under the state law. P.A. 16-195.
Connecticut had previously provided leave to care for injured servicemembers, with such
leave limited to 26 weeks during any 12-month period, which is the same benefit provided by the
federal FMLA for similar needs. Any time taken to care for injured service members offsets the
time permitted for other forms of FMLA leave.
New I-9
Effective January 22, 2017, employers are required to use an updated I-9 form, which can
be found here. The new form applies only to new hires and need not be completed by employees
already on the payroll.
