Question Presented Under New Hampshire common law, a non-compete agreement is unenforceable if it is found to be unreasonable; can a non-compete agreement be found unreasonable when it is for three years and thirty-five miles from the employees’ principal place of business after termination?
Brief Answer Most likely no. To prove that a non-compete agreement is unenforceable, under New Hampshire common law, the employee must show that it was unreasonably written. To show that a non-compete agreement is unreasonably written it cannot protect the legitimate interests of the employer, provide an undue hardship on the employee, or injure public interest. Tech. Aid Corp. v. Allen, 591 A.2d 262, 266 (N.H. 1991). The employer had a legitimate interest …show more content…
at 266. Under New Hampshire statutory law, an employer who requires a non-compete agreement as a condition of employment must provide a copy of the agreement, to the employee, prior to acceptance of employment. N.H. Rev. Stat. Ann. § 275:70. The statute does not need to be applied to this case because there is no factual dispute as to the client signing and receiving a copy of the non-compete agreement. Although, common law does apply and under common law, New Hampshire employs a three-pronged test to determine the reasonableness of non-compete agreements. Tech. Aid Corp., 591 A.2d at 265. The three prongs of the test are: (1) “is the restriction greater than is necessary to protect the legitimate interest of the employer,” (2) “does the restriction impose an undue hardship on the employee,” and (3) “is the restriction injurious to the public interest?” Id. at 265-66. “If any of these questions is answered in the affirmative, the restriction in question is unreasonable and unenforceable.” Id. at 266. In this case, the third prong is irrelevant, since “the mere fact of some limitation is not sufficient to constitute injury to the public interest.” Id. at 267. This case does not unreasonably limit the publics ability to choose, therefore, public interest is
Brief Answer Most likely no. To prove that a non-compete agreement is unenforceable, under New Hampshire common law, the employee must show that it was unreasonably written. To show that a non-compete agreement is unreasonably written it cannot protect the legitimate interests of the employer, provide an undue hardship on the employee, or injure public interest. Tech. Aid Corp. v. Allen, 591 A.2d 262, 266 (N.H. 1991). The employer had a legitimate interest …show more content…
at 266. Under New Hampshire statutory law, an employer who requires a non-compete agreement as a condition of employment must provide a copy of the agreement, to the employee, prior to acceptance of employment. N.H. Rev. Stat. Ann. § 275:70. The statute does not need to be applied to this case because there is no factual dispute as to the client signing and receiving a copy of the non-compete agreement. Although, common law does apply and under common law, New Hampshire employs a three-pronged test to determine the reasonableness of non-compete agreements. Tech. Aid Corp., 591 A.2d at 265. The three prongs of the test are: (1) “is the restriction greater than is necessary to protect the legitimate interest of the employer,” (2) “does the restriction impose an undue hardship on the employee,” and (3) “is the restriction injurious to the public interest?” Id. at 265-66. “If any of these questions is answered in the affirmative, the restriction in question is unreasonable and unenforceable.” Id. at 266. In this case, the third prong is irrelevant, since “the mere fact of some limitation is not sufficient to constitute injury to the public interest.” Id. at 267. This case does not unreasonably limit the publics ability to choose, therefore, public interest is