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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Employee Rights

Noncompete Agreement

California

Asked on Sep 12, 2022

i work for a employer from illinois ,however i am in california. My contract has non compete clause. will that be enforceable

My employer has placed me in a position thru another vendor. My employer contract with that vendor is ending. So vendor contacted me. However I am in contract with my employer for 1 year contract.

Christopher M.

Answered Sep 13, 2022

Short answer: Probably no, non-compete and non-solicitation clauses are not usually enforceable on an employee in California. Long Answer: Regardless of the choice of law provision in your contract, if an enforcement action is brought against you in California, the California courts will dismiss it as it goes against the "public policy of the state" unless your employer can make a really compelling case. Most states respect the stated public policy of other states when deciding matters against their citizens, so even if the case was brought in another states courts your soon to be former employer would probably be powerless to get a judgement enforcing your non-compete.

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Thomas L.

Answered Aug 4, 2023

If the future company buys the equity of your current employer, the Non-Compete continues in effect. If the future company buys the assets, the Non-Compete is terminated. I would request a sentence be added to the effect that "if there is a change of control of the Company (meaning more than 50% of the equity interest or 50% of the voting equity control) is sold or transferred, then this Non-Compete Agreement is terminated.

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Gagandeep K.

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The non-compete agreement will likely specify the non-compete period/time restriction. If that is not obviously stated, you should consider having an attorney review the non-compete agreement. Typically, a non-compete agreement in a partnership or LLC places a geographic limitation for a certain time period such that the partner/member is prevented from carrying-on a similar business in a geographic area where the partnership/LLC has done and continues to do business. You can read more about non-compete agreements in California here: https://www.contractscounsel.com/t/us/noncompete-agreement/california.

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Asked on Jun 3, 2023

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I recently accepted a promotion within my company and was asked to sign a noncompete agreement. I am concerned that if I accept the promotion and then leave the company, that I will not be able to take a similar position with another company. I am also worried that if I don't accept the promotion, I may be at risk of being terminated. I need to know what my rights are and what the implications are of signing the noncompete agreement.

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It depends on the terms of the non-compete and the size of your employer. Without seeing the agreement and knowing the size of your employer, I can't offer more advice.

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Asked on Dec 12, 2023

Could someone go to jail if they are accused of fraud for never intending to not breaching his or her non compete non solicit contract?

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Matthew S.

Answered Dec 16, 2023

No, this at worst is a civil matter and not a criminal matter. F

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