Noncompete agreements can prevent competition in New Hampshire, sometimes

When people talk about noncompete agreements in New Hampshire, it’s not always clear what they are referring to. Judges, lawyers, and business professionals often use different terms to describe different types of postemployment, contractual restrictions. These include noncompete restrictions in which the employee promises—for a limited period and within a certain geographic area—not to work at all for a competing company after departure. Employers also often obtain agreements that contain nonsolicitation restrictions, which prohibit former employees for some reasonable time from trying to divert employees and/or certain clients from the company. These nonsolicitation restrictions can also sometimes be referred to as noninterference or nonpiracy restrictions. Many employers also require employees to sign agreements with nondisclosure restrictions, which prevent former employees from divulging or using the employer’s confidential information.

This article focuses on the first type of restriction—a noncompete that prevents an employee outright from working for a competitor for some time. These restrictions aren’t typically enforced in New Hampshire, but there are important exceptions. One is for a noncompete restriction connected to the sale of a business—and not attendant only to an employment relationship. Another, and one of particular interest here, is a noncompete restriction aimed at high-level employees. A recent case from the New Hampshire Superior Court Business and Commercial docket is illustrative.

Broad noncompete enforced