Agreements preventing competition from employees during their tenure and for a specified period afterward are common in New Hampshire. These agreements typically aim to protect an employer’s confidential information, trade secrets, client relationships, and overall business interests. For instance, a software developer might be restricted from working for a competing software company in the same region for a year after leaving their current position.
Such restrictive covenants offer several advantages to businesses. They can help maintain a competitive edge by preserving proprietary knowledge and customer loyalty. Historically, courts have balanced the employer’s need for protection against the employee’s right to earn a living. Therefore, these agreements must be reasonable in scope, duration, and geographic area to be enforceable. This balance ensures fairness and allows for employee mobility while protecting legitimate business interests.
