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Non-Compete Agreement (NCA): A contract where an employee agrees to not compete with a company for a certain period of time after employment. Non-Solicitation Agreement (NSA): A contract where an employee agrees not to solicit the company's clients, employees, or other individuals with whom the employee worked.
Under state law (RSA 6), the legal manner of posting calls for posting durable signs with any words describing the physical activity prohibited, such as "No Hunting or Trespassing," in letters at least 2 inches high, and with the owner's name and address.
However, a non-solicitation agreement is generally less restrictive than a non-compete agreement and allows a former employee to continue working in the same industry but prevents them from soliciting a former employer's customers.
When should you use each? A non-compete agreement is only used between an employee and a business to specify who may hire them should they leave the company. An NDA is much broader and is used to protect any personal or business-related information that one or both parties want to remain confidential.
The Use of Non-Solicitation Agreements Non-solicitation agreements are often used in employment contracts to protect an employer's business interests. However, California courts have held that these agreements are void and unenforceable because they restrain trade in violation of public policy.
In New Hampshire, these types of contracts are narrowly interpreted by courts and somewhat disfavored. A court will only allow an employer to enforce a non-compete if the agreement is specifically tailored to protect the employer's legitimate business interests.
Non-solicitation ? where you agree not to approach customers (and possibly prospective customers) of your former employer in order to do business with them. Non-dealing ? just as with the non-solicitation clause, this prevents you dealing with customers or prospective customers of your former employer.
(Employee Name) will not solicit, divert, contact, or call upon customers of (Company Name) with the intent of doing business. (Employee Name) will not solicit a customer for a competing company and will not encourage a customer to discontinue business with (Company Name).