Connecticut Prohibits No-Hire Provisions in Homemaker and Home Health Agency Contracts
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.