Contact the experienced employment law attorneys at Maya Murphy, P.C. today at (203) 221-3100 or JMaya@Mayalaw.com.

A common concern among employers in the hiring process is that of investing time and resources into a prospective employee, only to have that employee leave for another employer within a short period of time.  To combat this practice, employers began to utilize a procedure known as an, “employment promissory note.”  However, Connecticut has now enacted C.G.S. Section 31-51r, which explicitly prohibits this practice by an employer.

Under Connecticut General Statute Section 31-51r, no employer may require, as a condition of employment, any employee, or prospective employee to execute an employment promissory note.  Under the statute, an employment promissory note is defined as any instrument or agreement which requires an employee to pay the employer, or its agent or assignee, a sum of money if the employee leaves his or her employment before the passage of a stated period of time.  Employment promissory notes also include any such instrument or agreement which states that payment of money constitutes reimbursement for training previously provided to the employee.  The execution of an employment promissory note as a condition of employment is against public policy and therefore, any such note shall be void under the law.  However, the statute maintains the security of any employment agreement entered between the parties.  If any employment promissory note is part of an employment agreement, the invalidity of such note shall not affect the other provisions of the employment agreement.

Further, Connecticut General Statute Section 31-51r does not prohibit or render void any agreement between an employer and an employee: (1) requiring the employee to repay to the employer any sums advanced to such employee; (2) requiring the employee to pay the employer for any property it has sold or leased to the employee; (3) requiring educational personnel to comply with any terms or conditions of sabbatical leaves granted by their employers; or (4) entered into as part of a program agreed to by the employer and its employees’ collective bargaining representative.  (C.G.S. §31-51r(3)(c)).

If you are an employer and are seeking compliance with Connecticut General Statute Section 31-51r, contact the experienced employment law attorneys today at 203-221-3100, or by email at JMaya@mayalaw.com. We have the experience and knowledge you need at this critical juncture. We serve clients in both New York and Connecticut including New Canaan, Bridgeport, White Plains, and Darien.

Source: C.G.S. §31-51r