Updated March 01, 2024
A New Hampshire non-compete agreement restricts an employee from performing the same or similar work in a competitive manner. Any restriction must include a specific period and geographical area that is deemed reasonable. Non-competes are prohibited to low-wage employees and physicians and cannot be presented after accepted employment.
Laws
Legally Enforceable?
Yes, a non-compete is legally enforceable in New Hampshire with the following requirements:
- Low-wage employees are prohibited. A low-wage employee is prohibited from entering a non-compete. Low-wage is defined as less than or equal to 200 percent of the federal minimum wage ($580/week or $30,160/year).[1]
- Presented at the offer of employment. A non-compete must be presented to an employee prior to the acceptance of a job offer. If afterward, the non-compete will be deemed unenforceable.[2]
Physicians (exempt)
Physicians are exempt from entering any type of non-compete agreement. If entered into, the agreement will be deemed void and unenforceable.[3]
Attorneys (exempt)
Attorneys are exempt from entering into an agreement that prohibits them from practicing law.[4]
Continued Employment
If continued employment is offered to an employee as part of a non-compete it is deemed as sufficient consideration.[5]
Maximum Term
5 years have been deemed reasonable by the Supreme Court of New Hampshire.[6]
What is Reasonable?
“A covenant not to compete should last no longer than necessary for the employees’ replacements to have a reasonable opportunity to demonstrate their effectiveness to customers.”[7]
Blue Penciling
A non-compete may be reformed if the employer can show it exercised “good faith in the execution of the employment contract.”[5]