Non Compete Agreement Nh

As the business world continues to become more competitive, many companies are turning to non-compete agreements as a means of protecting their interests. In New Hampshire, non-compete agreements are recognized and enforceable, but they must meet certain criteria to be considered valid. In this article, we will explore the specifics of non-compete agreements in New Hampshire and what employers and employees should know.

What is a Non-Compete Agreement?

A non-compete agreement is a contract between an employer and employee that restricts the employee`s ability to compete with the employer after their employment has ended. This typically means that the employee cannot work for a direct competitor of their former employer, solicit their clients or customers, or use the employer`s trade secrets or confidential information for their own benefit.

Non-compete agreements are often used in industries where specialized knowledge or skills are required, such as technology, healthcare, or finance. Employers use them to protect their investments in training and developing their employees, as well as to prevent the loss of key clients or trade secrets.

What are the requirements for a valid non-compete agreement in New Hampshire?

To be considered valid in New Hampshire, a non-compete agreement must meet the following criteria:

1. Reasonable in scope: The agreement must be reasonable in terms of its geographic scope, duration, and the activities that it restricts. A non-compete agreement that is too broad or restrictive may be deemed unenforceable.

2. Supported by consideration: The employee must receive something of value in exchange for signing the non-compete agreement, such as a job offer or a promotion.

3. Protects a legitimate business interest: The non-compete agreement must be necessary to protect the employer`s legitimate business interests, such as trade secrets or customer relationships.

4. Does not violate public policy: The agreement must not violate any public policy, such as an employee`s right to work or their right to pursue their chosen profession.

What are the consequences of violating a non-compete agreement in New Hampshire?

If an employee violates a non-compete agreement in New Hampshire, they may be subject to legal action by their former employer. The employer may seek an injunction to prevent the employee from engaging in competitive activities or may sue for damages suffered as a result of the employee`s breach.

However, it`s important to note that non-compete agreements are not always enforceable in New Hampshire. The court will consider whether the agreement is reasonable and necessary to protect the employer`s legitimate business interests, and whether it unduly burdens the employee`s ability to earn a living.

Conclusion

Non-compete agreements can be a useful tool for employers to protect their business interests, but they must be carefully crafted to be enforceable in New Hampshire. Employers should consult with legal counsel to ensure that their non-compete agreements meet the state`s specific requirements and are necessary to protect their interests. Meanwhile, employees should review any non-compete agreement carefully before signing and seek legal advice if necessary to ensure that their rights are protected.