As previously addressed on this blog, Connecticut Governor Ned Lamont recently signed into law the state’s fiscal year 2023 budget (HB5506) (Act). Among other things, the Act prohibits homemaker-companion or home health agencies from contractually preventing their clients from hiring agency employees. The Act deems such “no-hire” clauses as against public policy.

Specifically, effective on May 7, 2022, “no-hire” clauses may not be included in contracts between an agency its clients of the agency. Under the new statutes, a “no-hire clause” is a contractual provision that imposes a financial penalty, assesses any charges or fees, including legal fees, or contains any other language that supports a claim of breach of contract or for damages or injunctive relief against a client that hires an employee of a homemaker-companion or home health agency.