New Hampshire Enacts Law Requiring Disclosure of Non-Compete Restrictions

By: Bob Shea

Effective July 14, 2012, employers in New Hampshire must disclose any “non-compete” or “non-piracy” agreement to an employee or potential employee prior to making an offer of employments or an offer of change in job classification. Under RSA 275:70, if an employer fails to provide the employee or potential employee with a copy of the agreement prior to the offer the agreement will be deemed “void and unenforceable.”

The law is intended to prevent situations in which an employee leaves a job for a new position and is then told that he or she must sign a non-compete or non-piracy agreement as a condition of employment. Unfortunately, the law does not define what constitutes a “non-compete” or “non-piracy” agreement, and thus leaves unclear whether the law applies to non-solicitation agreements. It will be left to courts to decide the scope of the new law.

For more information on this topic, please contact Bob Shea.