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

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Contracts

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Florida

Asked on Jul 30, 2023

Noncompete agreement and severance packages?

I recently left my job of 5 years, where I had signed a non-compete agreement. I am now negotiating a severance package with my former employer and am unsure of what my rights and obligations are regarding the non-compete agreement. I am seeking clarification on how the non-compete agreement should be handled in relation to the terms of my severance package.

Diane D.

Answered Sep 1, 2023

To be able to answer this question, I would need to see the agreements. No one can answer your question without seeing the agreements.

Read 1 attorney answer>

Employment

Noncompete Agreement

Delaware

Asked on Dec 12, 2023

Employee contract, such as non compete/non solicit, could having this contract ever result in criminal/jail time?

If someone accuses you of fraud, because they believe you never had intended to honor your employment contract such as non-compete/non-solicit. Could this ever become a criminal case, resulting in criminal/jail time?

Matthew S.

Answered Dec 16, 2023

No, at worst, it is a breach of a contract which is a civil matter to be handled in civil court.

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Asked on Jan 19, 2025

Can my employer enforce a non-compete agreement if I was laid off due to COVID-19?

Can my former employer legally enforce the non-compete agreement I signed when I was hired, considering I was recently laid off due to the economic impact of COVID-19 and the agreement seems to restrict my ability to find new employment in my field? I have been actively seeking new job opportunities in the same industry, but potential employers are hesitant to hire me due to the non-compete agreement, which restricts me from working for competitors or starting my own business in the same field for a certain period of time. I want to understand if the non-compete agreement is still valid and enforceable given the circumstances of my layoff and the current job market conditions.

Merry K.

Answered Jan 28, 2025

I'm sorry, but your question is impossible to answer without reviewing your contract and knowing more about your type of job and compensation. Be aware that terms in such agreements are often found to be non-enforceable. You can start by reviewing the Washington State law on point: https://app.leg.wa.gov/rcw/default.aspx?cite=49.62&full=true

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Asked on Jul 13, 2023

Can a noncompete agreement be waived?

I am a small business owner in the retail industry and I am looking to hire a new employee. The employee has a noncompete agreement with their previous employer that I am concerned about. I want to know if it's possible for the agreement to be waived so that I can be sure I'm making the right decision in hiring this employee.

Thomas L.

Answered Jul 21, 2023

Yes, the parties to contracts can always agree to amendments and waivers. However, the former employer may have no interest in waiving the contract in this particular situation.

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Asked on May 19, 2023

Noncompete agreement choice of law?

I recently accepted a job offer with a new employer and they sent me a Noncompete Agreement to sign. I have some questions about the agreement, specifically related to the choice of law. My former employer and I are in different states, and I want to make sure I understand the implications of the agreement before signing.

Venus C.

Answered May 23, 2023

Congratulations on your new job. Generally, a choice of law clause contained in a non-compete agreement indicates which state law will govern the contract. By way of general example, let's pretend we have a non-compete agreement that states the choice of law is Florida. Let's also pretend the parties to this agreement had a dispute and one party filed a lawsuit against the other in the state of New York. In this pretend scenario, because the parties agreed Florida to be their choice of law for the non-compete agreement, the court in New York would abide by that contractual agreement and apply Florida law. While choice of law clauses are commonly used to indicate what law will apply to a contract, the language used or omitted plays a significant role in their interpretation and enforceability.

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