New Hampshire Non-Compete Agreement
New Hampshire enforces non-compete agreements only when reasonable, and bans them for low-wage workers and most physicians. Attorney review available.
Introduction
A non-compete agreement restricts a departing employee from competing with the business for a period, and New Hampshire voids it for any low-wage worker earning at or below 200 percent of the federal minimum wage, about $14.50 an hour. In New Hampshire a non-compete is enforceable, but only within limits. No statute sets a general reasonableness test, so enforceability rests on a common-law standard: courts in New Hampshire generally enforce a non-compete only if it is no greater than necessary to protect the employer's legitimate business interest, does not impose an undue hardship on the employee, and is not injurious to the public. Two statutes narrow that further. RSA 275:70 requires an employer to give a new employee a copy of any required non-compete before the employee accepts the offer of employment; a non-compete that is not disclosed that way is unenforceable, though confidentiality, nondisclosure, and trade-secret terms in the same contract still stand. RSA 275:70-a bans non-competes for low-wage employees, defined as those earning at or below 200 percent of the federal minimum wage (currently about $14.50 an hour, roughly $30,160 a year), and any such agreement is void. RSA 329:31-a separately voids the practice-restriction part of a physician's non-compete. New Hampshire courts generally will narrow an overbroad covenant rather than throw it out entirely where the employer acted in good faith. This page explains New Hampshire's rule and offers a template scoped to what New Hampshire actually permits. It is a state-law overview, not a promise that any given clause will hold up.
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Key Things to Know
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A non-compete agreement is a contract in which one party, usually an employee, agrees not to compete with a business for a set time and area after the relationship ends. In New Hampshire it is enforceable only if it is reasonable and no broader than necessary.
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New Hampshire has no statute setting the reasonableness test. Courts in New Hampshire generally enforce a non-compete only if it is no greater than necessary to protect a legitimate business interest, does not impose an undue hardship on the employee, and is not injurious to the public.
- 3
New Hampshire bans non-competes for low-wage workers. Under RSA 275:70-a a 'low-wage employee' earns an hourly rate at or below 200 percent of the federal minimum wage, currently about $14.50 an hour or roughly $30,160 a year, and any non-compete with such a worker is void, so confirm the current federal minimum wage.
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New Hampshire sets no fixed maximum months or miles. Courts in New Hampshire generally weigh the duration, geographic area, and restricted activities against the legitimate interest; shorter restrictions of six months to a year tied to specific trade secrets or goodwill are far more likely to hold up than long, broad ones.
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New Hampshire requires advance disclosure. Under RSA 275:70 an employer that requires a new employee to sign a non-compete as a condition of employment must give a copy before the employee accepts the offer, or the non-compete is unenforceable, though confidentiality and trade-secret terms in the contract survive.
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Physicians get special protection. RSA 329:31-a voids the part of any contract with a New Hampshire licensed physician that restricts the physician's right to practice medicine in a geographic area for a period after the relationship ends, while leaving the rest of the contract in force.
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Because New Hampshire limits non-competes, employers often protect information with a nondisclosure or nonsolicitation agreement and the New Hampshire Uniform Trade Secrets Act (RSA chapter 350-B), which protects trade secrets without restraining where a former worker can work.
Key decisions before you file
Before you file a Non-Compete Agreement in New Hampshire, a few decisions shape the document: which option to choose and what each one means. The Non-Compete Agreement guide walks through them.
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New Hampshire Requirements for Non-Compete Agreement
Enforceable Only If Reasonable
New Hampshire has no statute setting a general reasonableness test. Courts in New Hampshire generally enforce a non-compete only if it is no greater than necessary to protect a legitimate business interest, does not impose an undue hardship on the employee, and is not injurious to the public. A restriction that sweeps wider than the interest it protects is not enforceable in New Hampshire.
Low-Wage Workers Cannot Be Bound
RSA 275:70-a bans a non-compete for any low-wage employee, defined as one earning an hourly rate at or below 200 percent of the federal minimum wage, currently about $14.50 an hour or roughly $30,160 a year for full-time work. Any non-compete with such a worker is void and unenforceable. The floor tracks the federal minimum wage, so confirm the current figure and do not rely on any other state's fixed salary number.
Reasonable Scope Tied to a Legitimate Interest
New Hampshire sets no fixed maximum duration or distance. Courts in New Hampshire generally weigh the time, geographic area, and restricted activities against the legitimate business interest, such as trade secrets, confidential information, or customer goodwill. A shorter restriction of six months to a year tied to a specific interest is far more likely to hold up than a long, broad one, so keep the restriction narrow.
Advance Disclosure Before Acceptance
RSA 275:70 requires an employer that makes a non-compete a condition of employment to give a new employee a copy before the employee accepts the offer. A non-compete that is not disclosed that way is unenforceable against the employee in New Hampshire, though confidentiality, nondisclosure, trade-secret, and intellectual-property assignment terms in the same contract stay in full force.
Physician Practice Restrictions Are Void
RSA 329:31-a makes void and unenforceable any part of a contract with a physician licensed in New Hampshire that restricts the physician's right to practice medicine in a geographic area for a period after the partnership, employment, or professional relationship ends. The rest of the contract survives. This applies to contracts entered or renewed on or after the statute took effect in 2016.
Courts May Narrow an Overbroad Clause
Courts in New Hampshire generally will reform, or narrow, an overbroad non-compete to what is reasonable rather than void it entirely, provided the employer drafted the restriction in good faith and did not deliberately impose an unreasonable restraint. An employer should not rely on this to fix a clearly overreaching clause; scope the duration, geography, and activities to the legitimate interest from the start.
Consideration Is Required
A non-compete needs consideration to bind. Courts in New Hampshire generally treat an offer of employment as adequate consideration when the worker signs at the start of the job, which lines up with the RSA 275:70 duty to provide the agreement before the worker accepts. A non-compete first imposed on a current at-will employee generally needs new consideration, such as a raise, promotion, or other benefit, not just continued employment.
Protect Trade Secrets Another Way
Because New Hampshire limits non-competes and bans them for low-wage workers, employers often protect confidential information with a nondisclosure or nonsolicitation agreement and the New Hampshire Uniform Trade Secrets Act (RSA chapter 350-B). RSA 275:70 expressly keeps confidentiality, nondisclosure, and trade-secret terms in force even when a non-compete is unenforceable, so these tools protect information without restraining where a former worker can work.