This form is a Post-Employment Restrictions on Competition for use with exiting employees exposed to commercial trade secrets or other confidential information as part of their job. This form includes a Noncompetition Covenant as well as other relevant clauses, such as a Savings Clause, a Consulting Option, and an Assignment Clause, that can be integrated into any agreement with the former employee.
New Hampshire Post-Employment Restrictions on Competition, sometimes referred to as non-compete agreements, are legal contracts between an employer and an employee that aim to protect the employer's business interests after the employee's departure. These restrictions typically prevent former employees from engaging in competitive activities that may harm their previous employer's competitive position. In New Hampshire, the enforceability of post-employment restrictions on competition is governed by specific laws and regulations. The New Hampshire Revised Statutes Annotated (RSA) Section 275:70 et seq. Outlines the conditions and requirements for such agreements to be considered valid and enforceable in the state. There are two main types of post-employment restrictions on competition recognized in New Hampshire: 1. Non-Compete Agreements: A non-compete agreement restricts a former employee from working for or engaging in activities that directly compete with their previous employer's business. These agreements typically specify the geographic scope, duration, and the nature of the activities that are prohibited during the post-employment period. 2. Non-Solicitation Agreements: Non-solicitation agreements, on the other hand, restrict former employees from soliciting the employer's clients, customers, or other employees for a specific period after their employment termination. These agreements aim to prevent the unfair use of business relationships and confidential information gained during the course of employment. To be enforceable, New Hampshire law places certain conditions on post-employment restrictions on competition. These conditions include: a. Consideration: The agreement must be supported by valid consideration provided by the employer, such as providing specialized training, granting access to trade secrets, or other valuable benefits. b. Reasonableness: The restrictions must be reasonable in terms of their geographic scope, duration, and the activities prohibited. The agreement must protect legitimate business interests without imposing an undue burden on the employee's ability to find suitable employment. c. Good Faith: Both parties must enter into the agreement voluntarily and in good faith, ensuring that the terms are fair and reasonable. It is important to note that New Hampshire law does not permit the enforceability of post-employment restrictions on certain professions, such as lawyers, healthcare providers, and broadcasters, among others. In conclusion, New Hampshire Post-Employment Restrictions on Competition refer to non-compete and non-solicitation agreements implemented to safeguard an employer's business interests. These agreements must meet specific legal conditions to be considered valid and enforceable. By understanding the intricacies of these restrictions, both employers and employees can protect their interests and comply with the relevant provisions under New Hampshire law.
