Non-Compete Agreements in New Hampshire: What You Need to Know
Non-compete agreements are becoming increasingly common in today`s business world. They are designed to prevent employees from working for a competitor or starting a competing business within a specific time frame and geographic area after leaving their current employer. In New Hampshire, non-compete agreements are considered enforceable under certain circumstances.
What is a non-compete agreement?
A non-compete agreement is a contract between an employer and employee that restricts the employee from working for a competitor or starting a competing business for a specified period and within a specific geographic area. Non-compete agreements are designed to protect the employer`s trade secrets, confidential information, and customer base.
New Hampshire law on non-compete agreements
New Hampshire law considers non-compete agreements enforceable under certain circumstances. Non-compete agreements must be reasonable in terms of duration, geographic scope, and scope of the restricted activity. New Hampshire courts will not enforce a non-compete agreement if it is considered overly restrictive and therefore unfair to the employee.
Under New Hampshire law, non-compete agreements are only enforceable if:
– They are supported by consideration, such as a signing bonus, increased salary, or promotion.
– The employee is given adequate notice of the non-compete agreement.
– The non-compete agreement is necessary to protect the employer`s legitimate business interests.
– The non-compete agreement is reasonable in terms of duration and geographic scope.
Duration and geographic scope
The duration and geographic scope of a non-compete agreement must be reasonable. The duration should not be longer than necessary to protect the employer`s legitimate business interests. The geographic scope should be limited to the geographic area where the employer does business.
Restricted activity
The scope of the restricted activity should be limited to the employer`s legitimate business interests. Non-compete agreements that restrict an employee from working in any capacity for a competitor or starting any competing business are overly broad and therefore unenforceable.
Are there any exceptions?
New Hampshire law provides for several exceptions to non-compete agreements. Non-compete agreements are unenforceable for employees who are terminated without cause or laid off. They are also unenforceable for employees who earn less than a certain amount per week, currently set at $14.50 per hour. Additionally, non-compete agreements are unenforceable for doctors, dentists, and nurses who practice medicine.
Conclusion
Non-compete agreements are becoming increasingly common in today`s business world. In New Hampshire, non-compete agreements are enforceable under certain circumstances. They must be supported by consideration, give adequate notice to the employee, protect the employer`s legitimate business interests, and be reasonable in terms of duration, geographic scope, and scope of the restricted activity. Employers must ensure that their non-compete agreements meet these requirements to be enforceable in court.