Connecticut has passed several new laws that will impact small businesses in the coming year. From advertising transparency and digital asset rules to new workforce incentives and anti-discrimination protections, these changes are designed to increase fairness, compliance, and opportunity for business owners.
Here’s a breakdown of the most important updates every business owner should know.
Business Law and Practice Changes
Transparency, Flexibility, and Digital Transactions
| Law | Summary | Effective Date |
|---|---|---|
| Total Price Disclosure | Prohibits advertising, displaying, or offering goods/services without including all fees (excluding taxes). | July 1, 2026 |
| Regulatory Flexibility Analyses | Agencies must include expanded information in regulatory analyses affecting small businesses (e.g., recordkeeping, employee benefits, product changes). | Ongoing |
| Service of Process on LLCs | Expands who may be served legal documents on behalf of an LLC (manager, employee, principal office, mailing address, etc.). | 2025 |
| Uniform Commercial Code – Digital Assets | Adds rules for transactions involving digital assets, including transfer rights and secured lending (Article 12). | 2025 |
Employee and Workforce Changes
Stronger Workforce Programs and Protections
| Program / Law | Summary | Effective Date |
|---|---|---|
| Small & Minority-Owned Business Set-Aside Program | Converts the program to a spending allocation model with annual and contract-specific goals for goods, services, and public works. | 2025 |
| Antidiscrimination Protection | Expands protected classes to include sexual assault victim status and trafficking victim status in employment discrimination law. | 2025 |
| Retirement Security Program | New employee default contribution rates (3–10% initially, increasing annually to 15%), plus penalties and notice requirements for employers who fail to enroll or remit contributions. | July 1, 2025 |
| Workforce Incentive Grant Program | Expands eligibility for grants to employers meeting specified criteria, including a workforce of at least 5% people with intellectual disabilities and meeting pay/employment standards. | 2025 |
Consumer Protection and Other Impacts
Safeguards for Consumers and Veterans
| Area | Summary | Effective Date |
|---|---|---|
| Automatic Renewals & Continuous Services | Requires businesses with automatic renewals to send annual reminders and allow easy cancellation via website, email, or phone. | 2025 |
| Disabled Veteran-Owned Business Preference | DECD may prioritize Small Business Express Program applicants majority-owned by disabled veterans (30%+ VA disability rating). | 2025 |
What This Means for Small Businesses
HEDCO is committed to helping small business owners understand and adapt to changing state laws. These updates may affect how you advertise, structure your workforce, and maintain compliance.
If you’d like help reviewing how these updates may affect your business or compliance requirements, connect with our advisors today.