North dakota non compete law voids employee non competes outright: north Dakota voids any contract that restrains a person from exercising a lawful profession, trade or business, which makes employee non competes unenforceable; the only exceptions are for the seller of a business’s goodwill and for partners, members or shareholders on a dissolution or the sale of an ownership interest.
This guide gives the exact North Dakota non compete law rule with the date we verified it, the threshold and carve-outs where they exist, what a court does with an overbroad term, and what to do if you signed one. Rules verified against the statute on 2026-10-08; confirm the current rule with North Dakota Department of Labor and Human Rights or an attorney before you rely on it.
North Dakota Non Compete Law at a Glance
| Status | Banned — employee non competes are void |
| Income threshold | No earnings threshold |
| Statute | N.D. Cent. Code 9-08-06 |
| Notice / consideration | No statutory notice rule |
| Carve-outs | Sale of the goodwill of a business (reasonable area and time); partners, LLC members or shareholders on dissolution or the sale of an ownership interest (2019… |
| Overbroad terms | void |
| In effect since | long-standing; current text from 2019 HB 1351 |
In This North Dakota Non Compete Law Guide:
Is a Non Compete Enforceable Under North Dakota Non Compete Law?
North Dakota voids any contract that restrains a person from exercising a lawful profession, trade or business, which makes employee non competes unenforceable; the only exceptions are for the seller of a business’s goodwill and for partners, members or shareholders on a dissolution or the sale of an ownership interest. The statute is N.D. Cent. Code 9-08-06.
The carve-outs matter: sale of the goodwill of a business (reasonable area and time); partners, LLC members or shareholders on dissolution or the sale of an ownership interest (2019 HB 1351).
North Dakota Non Compete Law at a Glance
Rules verified against the statute on 2026-10-08; confirm the current rule with North Dakota Department of Labor and Human Rights or an attorney before you rely on it. The statute row is where to check it yourself.
| Status | Banned — employee non competes are void |
| What the rule says | North Dakota voids any contract that restrains a person from exercising a lawful profession, trade or business, which makes employee non competes unenforceable; the only exceptions are for the seller of a business’s goodwill and for partners, members or shareholders on a dissolution or the sale of an ownership interest. |
| Income threshold | No earnings threshold |
| Statute | N.D. Cent. Code 9-08-06 |
| Carve-outs | Sale of the goodwill of a business (reasonable area and time); partners, LLC members or shareholders on dissolution or the sale of an ownership interest (2019 HB 1351) |
| What a court does with an overbroad term | void |
| In effect since | long-standing; current text from 2019 HB 1351 |
The Reasonableness Test Under North Dakota Non Compete Law
For an ordinary employee, North Dakota courts generally do not weigh how long, how wide, or how fair a non compete is. The question is usually whether the agreement falls within one of the narrow situations the statute allows, such as the sale of a business’s goodwill or the breakup of a partnership.
If it does not, courts have generally treated the restriction as void, however modest its length or area. A North Dakota attorney can confirm how this applies to a specific agreement.
North Dakota courts have generally refused to enforce employee non competes regardless of their length or geographic reach. Restrictions have mainly been upheld in sale-of-business or partnership settings, where they are limited to a specified county, city, or part of either, and last only while the buyer or remaining partners carry on a similar business there. With an overbroad term the court will void.
North Dakota Non Compete Law If You Were Fired or Laid Off
Because a typical employee non compete is generally void in North Dakota, being fired or laid off rather than quitting usually does not change the result. Most workers in either situation face the same rule, but the worker should confirm the agreement’s exact terms with an attorney.
What the Employer Must Give Under North Dakota Non Compete Law
In North Dakota, a raise, bonus, or continued employment generally does not make an otherwise void employee non compete enforceable. Courts focus on whether a statutory exception applies, not on what the worker received in exchange.
Non Solicit and Non Disclosure Agreements Under North Dakota Non Compete Law
The North Dakota Supreme Court has treated customer non solicitation clauses as restraints on trade under the same statute, so they are generally unenforceable against employees, and the law on clauses barring the hiring of former coworkers is less settled. Confidentiality and non disclosure agreements are treated differently, and a former employer can still protect real trade secrets under North Dakota’s Uniform Trade Secrets Act (N.D.C.C. ch. 47-25.1).
If You Already Signed One: North Dakota Non Compete Law in Practice
Read the whole agreement, including any non solicit, confidentiality, choice-of-law, or forum clause, and check whether it was signed as part of selling a business or leaving a partnership. Return company files, client lists, and devices, and do not take confidential information to the new job.
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If the former employer raises the agreement, ask for a written release, and have a North Dakota employment attorney review it before you turn down an offer.
Against a void employee non compete, a North Dakota employer generally cannot get an injunction or damages based on the restriction itself. An employer can still sue over trade secret misappropriation, which can bring an injunction, damages, and attorney fees in willful or bad-faith cases. It can also sue over competing against the employer while still on its payroll.
The Federal Rule and North Dakota Non Compete Law
The Federal Trade Commission adopted a nationwide non compete ban in 2024, but a federal court blocked it before it took effect and the FTC later withdrew its defense; as of October 2026 there is no federal ban in force, so North Dakota non compete law controls.
Other North Dakota Non Compete Law Rules to Know
In a 2017 decision, the North Dakota Supreme Court refused to enforce clauses in an employee non compete that tried to apply another state’s law or require suit in another state. A North Dakota worker usually cannot be held to a non compete just because the agreement names another state. The statute’s exceptions cover the sale of a business’s goodwill and the dissolution of a partnership.
Think your employer owes you money or broke the law?
A non compete is a contract question, and the answer turns on your own agreement’s words. Your state bar runs a lawyer-referral service that connects you with an employment attorney for a short, low-cost first consultation — find it through the American Bar Association referral directory. Free legal aid may also help if your income qualifies.
North Dakota — the bottom line
- North dakota non compete law is a ban: employee non competes are void — the first thing to check is which side of the line your agreement falls on.
- Under North Dakota non compete law, an overbroad term is void — the words of your own agreement decide more than the headline rule.
- North dakota non compete law does not stop you from taking a new job in a different field or outside the restricted area — read the scope before you turn an offer down.
Frequently Asked Questions
Are non competes enforceable in North Dakota?
No — under North Dakota non compete law employee non competes are void. North Dakota voids any contract that restrains a person from exercising a lawful profession, trade or business, which makes employee non competes unenforceable; the only exceptions are for the seller of a business’s goodwill and for partners, members or shareholders on a dissolution or the sale of an ownership interest.
Is there an income threshold under North Dakota non compete law?
No. North Dakota has no earnings threshold; enforcement turns on whether the agreement is reasonable.
What does a North Dakota court do with an overbroad non compete?
Void.
Can my employer enforce a non compete in North Dakota after firing me?
Because a typical employee non compete is generally void in North Dakota, being fired or laid off rather than quitting usually does not change the result. Most workers in either situation face the same rule, but the worker should confirm the agreement’s exact terms with an attorney.
I signed a non compete in North Dakota and have a new offer — what should I do?
Read the whole agreement, including any non solicit, confidentiality, choice-of-law, or forum clause, and check whether it was signed as part of selling a business or leaving a partnership. Return company files, client lists, and devices, and do not take confidential information to the new job.
Official North Dakota Sources & Resources
- North Dakota Department of Labor and Human Rights: https://www.nd.gov/labor/wage-hour
- North Dakota non compete statute (N.D. Cent. Code 9-08-06): https://ndlegis.gov/cencode/t09c08.pdf
- Verified source: https://ndlegis.gov/api/assembly/66-2019/session-laws/documents/contr.pdf
- U.S. Department of Labor, Wage and Hour Division — state payday requirements: dol.gov
- Federal Trade Commission — the non compete rule (status): ftc.gov
- North Dakota bar lawyer referral: https://www.sband.org/page/lawyer_referral_serv
This North Dakota non compete law guide was last verified against official North Dakota sources in October 2026. Rules change — confirm the current figure with the state agency or a licensed attorney.
More North Dakota Workplace Rights Guides
- North Dakota Final Paycheck Law: Deadlines and Penalties
- North Dakota Wrongful Termination Laws: When a Firing Is Illegal
- North Dakota At Will Employment Law: The Exceptions
- North Dakota Labor Laws: Every Rule in One Place
- Unemployment and Workplace Rights Guides for All 50 States
Disclaimer: This guide is general information, not legal or financial advice. My Unemployment Rights is an independent educational resource, not a government agency and not a law firm. Final-paycheck deadlines, penalties and non compete rules change — every figure here carries the date we verified it. Confirm the current rule with your state labor department or a licensed attorney before you act.