New Connecticut Laws effective October 1, 2007

Pumpkin - Morgue FileOctober.  Here in New England, it brings to mind pumpkins.  Besides being carved up (made into pumpkin pie), pumpkins also hold a place in story lore -- you'll recall from Cinderella that a pumpkin could be magically transformed into a beautiful carriage (which of course, you can buy on Amazon.) 

In Connecticut, October also brings about new laws, which go into effect on this date.  Which laws will blossom into beautiful carriages, with meaning and true purpose, and which ones will remain pumpkins?  It remains to be seen.  But here are some of my early contenders on the employment side of things:

Carriages (Laws that should run smoothly -- relatively easy to interpret, apply and understand):

  • The laws regarding discrimination on the basis of sexual orientation and civil union status have been evolving this year.  Before this year, Connecticut just prohibited discrimination on the basis of sexual orientation.  In July 2007, Connecticut prohibited employment discrimination based on a person's civil union status.  Now, effective today, however, the laws are broadened even further on sexual orientation grounds. 

It will now be "discriminatory practice for any person to subject any other person to the deprivation of any rights, privileges or immunities secured by the Constitution or laws of this state on account of sexual orientation."  This is clear and gives some greater consistency to the application of sexual orientation discrimination laws in the state.  A full background on these new laws is discussed during an earlier post. 

Pumpkins (Laws with limited application or may lead to unintended consequences):

  • A new law prohibiting the use of non-compete agreements, in some circumstances, for security guards.  I've discussed this new law's background at length previously, but suffice to say that its an inartfully drafted statute.  At its core, the new law prohibits employers from requiring security officers to "enter into an agreement prohibiting such person from engaging in the same or a similar job, at the same location at which the employer employs such person, for another employer or as a self-employed person". (If the employer can "prove" that the employee received trade secrets, then a non-compete can be used.)
  • Incidentally, this same new law also prohibits the use of non-compete agreements for broadcast employees (also known as television anchors).  Jonathan O'Connell, of the Hartford Business Journal, had this to say about the case over the summer and recalled the influence that WFSB Channel 3 anchor Al Terzi had on its passage. 

One can argue about whether non-compete agreements are a useful tool for business or harm an employee's right to work; when the legislature carves out exceptions for certain industries however, it passes up on the opportunity to set real boundaries for restrictive covenants. Instead, this statute would appear to affect just a handful of employees every year, if even that.

(Speaking of deadlines and new laws, yesterday was the deadline for filing new updated EEO-1 forms to comply with federal laws. The guidance from the DOL is publicly available.  Employers that haven't yet submitted the information should do so ASAP.)   

Four for...Employment Contracts and Useful Employment Law Information

When I first started practicing, each attorney used to keep their "form" files.  What were these? Copies of key documents that could be used over and over again.  Now, with the advent of computer databases, sharing information within a firm is routine and easy.

But suppose you wanted to find out what other attorneys or companies were doing; wouldn't it be great if you could see the work product of others for free?  Turns out you can --- you just need to know where to look.

Here are four websites that I routinely peek at to see what others are doing and for inspiration.

1.  Suppose that a client asks for a copy of the latest executive employment agreements.  Did you know that major corporations are required to file many of those agreements agreements with the SEC and are available for free?  In other words, you too can review contracts that were done by attorneys at all the largest US lawfirms.  One excellent (if slightly outdated) resource  that compiles such SEC filings is OneCLE.com. 

2.  Similarly, the Footnoted blog, routinely digs up nuggets from SEC filings.  On Friday, a new blogger for Footnoted, Wendy Fried, had an intriguing post about the employment agreement for Cosi's new president.  Wendy's other site, Proxyland, reviews other SEC filings, like Compensation Discussions and Analysis, such as this one for Gymboree.  Of course, you could just look up the SEC filings, but we're all a little stretched for time.

3.  Although not technically "free", court databases are a great resource for lawyers is to look at what other lawfirms are filing in federal court cases.  For example, suppose you'd like to see how a lawfirm drafted a winning summary judgment motion, how do you go about doing that without knowing the case name? Two straightforward steps. First, go to the Connecticut District court opinions website and browse recent decisions by topic.  Once you locate a name or number, go to the District Court's Electronic Court Filing system and type in the case name or number. (Registration and a nominal fee of 8 cents per page is required.)  You can easily find a motion for summary judgment in the docket listings for a case.  You can also look up exhibits that are filed as well.

4. One buzzword of late has been to set up "best practices" for employers. The EEOC issued a report a few years ago that is as valuable for ideas as ever, called, "Best Practices of Private Sector Employers".  For in-house counsel and outside counsel coming up with ideas for improving a corporations internal practices and policies, this document can provide a valuable head start. 

What are the websites that you use to get a head start on a contract or other form? Any other hidden treasures out there on the Internet?

Non-Compete Agreements for Security Guards

With apologies to Alex Trebek, it's time for a game of legal Jeopardy


First, the answer: "As a result of a new Connecticut law (effective October 1, 2007), employees in this arcane type of job classification can now bring suit if their employer requires them to sign a certain type of non-compete agreement."

The question: What is "classification 339032 of the standard occupational classification system of the Bureau of Labor Statistics of the United States Department of Labor"?

Are you confused yet? If so, let's back up.  

About a year ago, Guardsmark, a security company, lost its contract to provide services to ESPN. When employees from the old security company tried to work for the new company, Guardsmark invoked the non-compete agreements that these employees signed.  As Connecticut readers know, there are not many state laws that restrict the use of non-compete agreements, compared with other states.

Attorney General Richard Blumenthal picked up the cause and testified in support a new bill that would prohibit employers from using non-compete agreements on security personnel in limited circumstances. 

The bill, which was subsequently modified then passed by the general assembly, prohibits employers from requiring security officers to "enter into an agreement prohibiting such person from engaging in the same or a similar job, at the same location at which the employer employs such person, for another employer or as a self-employed person".   (If the employer can "prove" that the employee received trade secrets, then a non-compete can be used.)

The general assembly, however, did not use the term "security officer" or define it, which, I would argue would have been the more logical approach to take. Rather, it relied on standard occupational classifications that have been created by the U.S. Department of Labor "for the purpose of collecting, calculating, or disseminating data."

A look at the online SOC codes, however, are far from enlightening: Under 33-9062 (which is how the DOL actually lists its classification), it has the following description:

33-9032 Security Guards -- Guard, patrol, or monitor premises to prevent theft, violence, or infractions of
Far from an eloquent description, since many employers are not even aware that the DOL uses these types of classification.

So, how will this be interpreted? We're unlikely to find out given the narrow nature of the law. For employers of security guards, however, one answer is simple: Do not use broad non-compete agreements to prevent employees from working for new employers at the same location. 

And stay tuned for a sequel; the DOL website posts this informational note: "The 2000 SOC Manual is currently under revision.