Restrictive covenants in employment agreements can be very useful to companies on the leading edge of technology and business innovation. This document is a general checklist of factors employers should consider with respect to the use of such covenants.
In the state of New Hampshire, Employee Restrictive Covenants refer to legally binding agreements between employers and employees that restrict certain actions or behaviors, typically after the termination of employment. These covenants are designed to protect the employer's legitimate business interests, such as trade secrets, intellectual property, customer relationships, and confidential information. Here, we will explore the various types of Employee Restrictive Covenants recognized in New Hampshire. 1. Non-Competition Agreements: Non-competition covenants prohibit employees from engaging in or starting a similar business that directly competes with their former employer within a specified geographic location and for a defined period of time. These agreements aim to prevent employees from using their knowledge, skills, and relationships gained during their employment to directly compete with their former employer. 2. Non-Solicitation Agreements: Non-solicitation covenants restrict employees from actively soliciting or enticing the employer's clients, customers, or employees to end their business relationship or leave the organization. These agreements safeguard the employer's customer base and prevent the employee from poaching valuable clients or employees for their own benefit or for a competitor. 3. Non-Disclosure Agreements: Non-disclosure covenants, also known as confidentiality agreements, prohibit employees from disclosing or using confidential and proprietary business information, trade secrets, or intellectual property of the employer during or after their employment. These agreements protect the employer's sensitive information from being exploited or shared with competitors or other parties. 4. Non-Disparagement Agreements: Non-disparagement covenants restrict employees from making negative or harmful statements, whether oral or written, about their former employer, colleagues, products, or services. These agreements aim to maintain a positive image of the employer and prevent damage to their reputation by limiting an employee's ability to tarnish it through disparaging remarks. It's important to note that New Hampshire law places certain restrictions on the enforceability of Employee Restrictive Covenants. For instance, non-compete agreements must be reasonable, geographic scope, and protect a legitimate business interest to be deemed enforceable. It is advisable for both employers and employees to seek legal counsel to ensure compliance with the state's specific regulations regarding Employee Restrictive Covenants. In conclusion, New Hampshire Employee Restrictive Covenants encompass various types of agreements, such as non-competition, non-solicitation, non-disclosure, and non-disparagement covenants. Each serves to safeguard the employer's lawful business interests and protect confidential information, trade secrets, customer relationships, and reputation.
