New Hampshire Court Voids Non-Compete Clause in Independent Contractor Agreement

 A recent New Hampshire decision serves as a reminder that courts may treat non-compete provisions differently in the context of independent contractor agreements compared to employment agreements.

Summary.  The Presiding Justice of the New Hampshire Superior Court held earlier this month that, under the circumstances of the case before him, a non-compete covenant imposed restraints on an independent contractor “greater than necessary to protect the legitimate interests” of the plaintiff.

The covenant.  Woodward was a personal trainer.  His relationship with Brian’s 1:1 Fitness, a training facility, began as an employee.  Subsequently, he executed annual independent contractor agreements.  He paid Brian’s a “rental” fee in exchange for use of the employer’s space and equipment for training his clients.  He alone determined the training regimen of his clients, he kept 100% of the fees they paid, and he was not subject to any control by Brian’s. 

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