Signifying New Hampshire’s first regulation of private non-compete agreements, Governor John Lynch signed into law an act requiring employers to provide a copy of all “non-compete and non-piracy agreements” to job applicants. Effective July 14, 2012, HB 1270 will require employers to provide copies of certain employment agreements to new hires prior to or concurrent with a job offer or “change in job classification.” Failure to comply will render an agreement void and unenforceable.

The law intends to protect employees from potential duress such as an employee who leaves a job for a new position and receives a non-compete agreement after commencing the new employment. It also covers employees who receive a promotion or transfer to a position that necessitates a new non-compete agreement.

The new law contains several ambiguities. It fails to define what constitutes a “non-compete” or “non-piracy” agreement. For example, the law does not address whether it includes non-solicitation, non-disclosure or confidentiality agreements. The law also fails to define “change in job classification.” This lack of specificity will leave much opportunity for interpretation by the courts.

Despite the ambiguities, it is clear that timeliness will be of the utmost importance. Specifically, under HB 1270 all non-compete and non-piracy agreements should be given prior to or with a job offer. In order to facilitate compliance, New Hampshire employers should consider using an acknowledgement of receipt in conjunction with such agreements.