New Non-Competition and Non-Piracy Agreements Law Requires Disclosure or Agreements Will Be Unenforceable

Generally, New Hampshire looks with disfavor on non-competition agreements and this new law (HB 1270), by requiring disclosure at the outset, makes it even more likely that businesses may find themselves with unenforceable agreements. Effective July 14, 2012, businesses must provide copies of any non-competition and non-piracy agreements to potential employees or employees who are making changes in their job classifications prior to or at the same time as the change in employment occurs.

The law is clear that if the agreements are not in compliance, then they will be void and unenforceable. Before hiring and/or changing existing employees' job classifications, take the time to consider whether you will want them to sign a non-competition or non-piracy agreement. By doing so, your business will have a better shot at having an enforceable agreement assuming the restrictions are not overly broad. Run these agreements by an employment lawyer to assess the likelihood of enforceability.