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Connecticut Extends Training-Repayment Note Ban to All Employers; New Jersey Cuts Leave Threshold to 15

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Why it matters

Connecticut's ban on employment promissory notes, agreements that require workers to repay training costs if they leave early, now applies to employers of every size. Previously it covered only employers with 26 or more employees. The expanded ban takes effect October 1, 2026, subject to statutory exceptions. Connecticut's AI rules, also in effect, bar employers from using an automated employment decision tool (AEDT) as a defense to a discrimination complaint. The Connecticut Commission on Human Rights and Opportunities or a court may still weigh evidence of anti-bias testing and other proactive efforts. The changes were enacted through Public Act 26-12, which Thomson Reuters lists as signed May 12, 2026. New Jersey's job-protected family leave law, effective July 17, 2026, now covers employers with 15 or more workers, down from 30. Separately, the New Jersey Department of Labor has clarified its ABC test for classifying workers as employees or independent contractors under unemployment, wage-and-hour, and wage-payment law, effective October 1, 2026. Rhode Island's Fair Employment Practices Act now defines "employee" to include domestic workers, effective June 10, 2026.

The sources do not establish every detail of how these rules will be applied in practice. Regulatory guidance on the Connecticut AI provisions and the New Jersey ABC clarification is not covered in the summary, so the scope of each change beyond its statutory text remains unsettled. The statutory exceptions to Connecticut's promissory note ban are referenced but not itemized.

Multistate employers should map October 1, 2026 deadlines now. Connecticut's expanded job-posting rule requires a good-faith wage range and a general description of benefits in postings for any role with at least one Connecticut employee, and it reaches out-of-state and fully remote positions that report to a Connecticut supervisor, office, or worksite. Connecticut's paid sick leave law extends to most employers with at least one Connecticut employee on January 1, 2027. Employers that rely on AI screening tools should document anti-bias testing, since that record may matter in a discrimination defense even though the tool itself is no longer a defense.

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