Generally speaking, in New Hampshire, a covenant not to compete means that the employee will agree not to work for any of their employer's competitors when leaving the company. Such agreements are also known by the term "non-compete clauses". An employee who signs a covenant not to compete can receive compensation for the agreement, or in some cases the agreement is a condition for their being hired.
When are Covenants not to Compete Unenforceable?
Knowing in advance whether a judge will enforce an employee's non-compete clause can be difficult. While the employer?s interests are significant, New Hampshire courts place great weight on an individual?s freedom to pursue the employment they want. Accordingly, courts have only upheld those agreements that they consider reasonable under the circumstances. Covenants not to compete that a court will categorize as unreasonable include agreements that last for a long duration or that restrict the employee to an unreasonable geographic area around Jaffrey.
Non-compete clauses are also limited in that they may only apply to competitors who are rationally related to the industry of the employer. Lastly, an employer is required to have a legitimate business reason in its motivation for imposing a covenant not to compete on an employee.
Do I Need an Attorney when Dealing with a Covenant not to Compete?
Before signing anything that may restrict your rights, you might want to hire a Jaffrey, New Hampshire attorney to review the contract. A lawyer can then negotiate to modify the covenant as needed, or might even draft a new one that is acceptable to both parties Attorneys can provide valuable counseling to employers who are contemplating suing an employer who breached a covenant not to compete. They can also assist employees who have signed an agreement limiting their employment options.