North Dakota State Form

North Dakota Non-Compete Agreement

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North Dakota Legal Requirements

Key ND statutes and obligations that apply to your non-compete agreement.

Requirements

  • North Dakota is one of the very few states that bans non-compete agreements outright; NDCC §9-08-06 renders them void as against public policy
  • The sole statutory exception is the sale of a business: a seller may agree not to carry on a similar business within a specified geographic area
  • Confidentiality and non-disclosure agreements protecting trade secrets remain fully enforceable

Restrictions & Limits

  • Any non-compete clause in an employment or contractor agreement is unenforceable — courts will not blue-pencil or narrow them
  • Employers may not condition employment or continued employment on signing a non-compete
  • Non-solicitation of employees may also be void if structured to function as a de facto non-compete

Official Statute References

Primary North Dakota statutes governing this document type.

North Dakota Non-Compete Agreement FAQ

Common questions about non-compete agreements under North Dakota law.

Can a North Dakota employer enforce a non-compete signed in another state?

Courts are split, but North Dakota's strong public policy against non-competes (NDCC §9-08-06) typically overrides choice-of-law provisions when the employee works in North Dakota. Consult counsel if a non-compete references another state's law.

What can a North Dakota employer use instead of a non-compete?

Employers can protect legitimate interests through trade secret agreements under the North Dakota Trade Secrets Act (NDCC Ch. 47-25.1), non-disclosure agreements, and narrowly tailored non-solicitation of specific customers tied to actual client relationships.

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Disclaimer: LegalLawDocs.com provides self-help legal documents for informational purposes only. The documents and information on this site do not constitute legal advice and are not a substitute for consultation with a licensed attorney. Laws vary by state and change frequently — review your document with a qualified professional before relying on it.