Make a New Hampshire Non-Compete Agreement

Applicable State Laws - NH RSA § 275:70, 275:70-a

Effective July 2014, all non-compete agreements in the state of New Hampshire must be fair and reasonable. This means that no greater restriction may be imposed on the employee than necessary to protect the company’s business interest. According to a new law, dated September 8, 2019, new employees must be given a copy of the non-compete before they accept an offer of employment.

Additionally, there are exemptions from non-compete agreements:

• Physicians (as of August 5, 2016)
• Low-wage workers, which are those earning less or equal to twice the minimum applicable wage of federal minimum wage or state hourly rate amount for tipped workers

Protect your New Hampshire business by also using a New Hampshire non-disclosure agreement form. Download a New Hampshire non-disclosure agreement form now!

How to Write a New Hampshire Non-Compete Agreement

To write a New Hampshire non-compete agreement, review New Hampshire law. Include the following clauses:

• Purpose. This clause explains the purpose of the non-compete agreement: to protect the legitimate business interests of the business. It may state that confidential information may be referred to as "proprietary information." It also identifies the parties as well as their roles. It also includes the effective date of the contract.
• Non-compete. This clause states the restrictions on the time, geographic restriction, business activities and practices, non-solicitation of customers and clients, restrictions on working for general and specific competitors, and non-solicitation of employees.
• Time period. This clause may restate the time restriction. It also states when the time restriction begins, either at the start of the employment relationship or when it terminates.
• Purchase option. This clause explains whether your business will allow the signing party to pay a certain amount of money to buy their way out of the contract. If so, the amount they must pay is listed in this clause.
• Jurisdiction. This clause states the non-compete agreement will be governed by New Hampshire law.
• Confidential information. This clause states that "confidential information" refers to any and all technical and non-technical information that includes, and is not limited to, any data or other proprietary information related to products, inventions, plans, methods, processes, developmental products, experimental products, intellectual property, software, databases, customer lists, vendor and supplier lists, marketing methods, reports, business plans, financial information, or other information regarding your business or any of your customers, clients, customers, or licensees that is made available to the signing party under the terms of the non-compete agreement.
• Permitted disclosure. This clause explains when information is no longer considered confidential. This generally occurs when information is made public by no fault of the signing party, when the signing party discovers information on their own and through no fault of another party, and when your business provides written consent to release certain information to the public.
• Confidentiality. This clause states the signing party understands the information they have access to is confidential and they agree not to directly or indirectly disclose it to another party without the written consent of your business. It also states that they will not use the information for any reason except to further your business without receiving written consent.
• Consultants and employees bound. This clause states that the agreement binds both consultants and employees to keep the information in the strictest of confidence. They are also on a need-to-know basis.
• Return of materials. This clause states that when the agreement is terminated or when otherwise requested by your business, the signing party must return all of the documents and other tangible materials that represent confidential information of the business as well as any other copies that exist. This clause also states that your business will inform the signing party of any unauthorized loss of confidential information.
• Remedies. This clause explains the legal remedies that your business may be entitled to pursue according to New Hampshire law in the event that the signing party does not honor their obligations. Examples include the recovery of court costs and reasonable attorney fees, the award by a court of a temporary restraining order or preliminary injunction against the unauthorized use, etc., as well as all other remedies available under New Hampshire law or as a matter of equity.
• Choice of Law. This clause states that the parties agree to choose New Hampshire law as the governing body of statutes.
• Entire agreement. This is the final clause of the non-compete agreement. It states that the entire agreement may be amended in writing, but only if the parties sign it.

Both parties must sign and print their names. They should date their signatures. Each party should receive a copy of the executed agreement for their records.