New Hampshire Noncompete Agreement: What's Included and Enforceability

Quick Facts — Noncompete Agreement Lawyers

Is a Non-Compete Agreement Enforceable in New Hampshire?

In New Hampshire, non-compete agreements can be enforced as long as they meet specific standards laid out in state legislation. These standards include:

  1. A non-compete cannot be entered into by a low wage employee. Under the state statute, low wage is less than or equal to 200% of the federal minimum wage.
  2. Employees must be presented with a non-compete agreement before accepting the job offer. Any non-compete agreements given to the employee after acceptance will not be enforceable.

The two types of employees who are prohibited from entering non-compete agreements in New Hampshire are attorneys and physicians.

How Long Does a New Hampshire Non-Compete Agreement Last?

The Supreme Court of New Hampshire has determined that non-competes that last up to five years are reasonable and enforceable under certain circumstances. When determining reasonability of a non-compete term, courts will look at several factors like the geographic limitations and the type of work an activity prohibited by the agreement.

How Do You Get Around a Non-Compete Agreement in New Hampshire?

If an employee in New Hampshire wants to get around or terminate a non-compete agreement, they must show that the agreement is unreasonable. A non-compete is unreasonable when it is overly restrictive, puts an undue hardship on the employee, or causes injury to the public.

When terms are overly broad or unreasonable, a court has two options. They can either strike down the entire contract or they can modify the unreasonable term and enforce the rest of the contract. This is called blue penciling and can only be done when the employer has acted in good faith.

What Voids a Non-Compete Agreement in New Hampshire?

A non-compete agreement will be void in New Hampshire if it was signed by an employee under duress, coercion, or fraud. For a contract to be enforceable and valid, it needs to be entered into voluntarily.

Frequently Asked Questions

How do I hire a lawyer to draft a noncompete agreement in New Hampshire?
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Noncompete agreement and industry restrictions?

I recently signed a Noncompete Agreement with my current employer. I am looking to explore other opportunities in my industry and want to know what restrictions my noncompete agreement might have on me. I am interested in understanding the limitations of the agreement and if there are any potential implications of taking a job in the same industry.

Danielle G.

Answered Jul 11, 2023

In order to ascertain the limitations and implications, you would need to review the specific language of the agreement. If the non-compete is very broad, it's possible it would not be enforceable. In New York, for a non-compete agreement to be enforceable, it must be for a reasonable period of time and limited geographic scope. It also must protect the employer's legitimate interest. For example, the restrictions must protect confidential information or specialized skills you gained while on the job, or some other legitimate interest. If the agreement goes beyond those limitations, a court could find the non-complete to be unreasonable and unenforceable, in whole or in part. As to what restrictions your specific non-compete imposes (and the reasonableness of those restrictions), you would need to look at the specific language in the agreement. If you are unsure about the limitations, you should seek advice of counsel to help decipher the extent it would apply to your industry in general, and the likelihood it would be enforceable in court.

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