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June 2, 2026
As part of an omnibus bill intended to further protect employee rights, Connecticut has expanded its prohibition on “employment promissory notes” to apply to all employers rather than only those employers having 26 or more employees. The amendment, which is effective October 1, 2026, reiterates Connecticut’s longstanding position that employment promissory notes are against public policy and thus void.
An “employment promissory note” requires an employee to pay money to the employee, or its agent or assignee, if the employee leaves their employment before a stated period. It specifically includes an agreement stating that such payment constitutes reimbursement for training previously provided by the employer.
The following exceptions remain in place: agreements requiring the employee to repay sums advanced to the employee, agreements requiring the employee to pay for property the employer has sold or leased to the employee, agreements requiring educational personnel to comply with the terms or conditions of sabbatical leave, and agreements entered into as part of a collective bargaining program.
Employers should review and update their existing policies and practices with respect to requiring employees to sign notes or agreements providing for repayment upon departure from employment to ensure compliance with the new law.
The author of this article, Karen E. Milner is a member of the Bars of Pennsylvania and Louisiana. This article is designed to provide one perspective regarding recent legal developments, and is not intended to serve as legal advice in Louisiana, Pennsylvania, Connecticut or any other jurisdiction, nor does it establish an attorney-client relationship with any reader of the article where one does not exist. Always consult an attorney with specific legal issues.
