North Dakota has one of the strictest and oldest non-compete restrictions in the United States. Under N.D.C.C. § 9-08-06, non-compete agreements are void in employment relationships, with very narrow exceptions. If you have been asked to sign a non-compete as a condition of employment in North Dakota, you are protected by law—the agreement is almost certainly unenforceable. This is exceptionally good news for workers, but it means employers who include void non-competes in employment contracts are acting against North Dakota public policy and may face sanctions for enforcing them.
North Dakota’s approach reflects an early and uncompromising view of worker mobility: employees have the right to earn a livelihood wherever they choose. While other states have gradually begun restricting non-competes in recent years, North Dakota has maintained this principle for decades.
Key Facts
| Factor | Details |
|---|---|
| Enforceability | VOID in employment; void except sale of business or partnership/LLC dissolution |
| Max Duration | Not applicable; all employment non-competes are void |
| Income Threshold | Not applicable; all employment non-competes are void |
| Blue-Pencil Doctrine | Not applicable; courts will not reform void non-competes |
| Garden Leave | Not applicable; employment non-competes are statutorily void |
What Makes a Non-Compete Enforceable in North Dakota
Non-competes in employment are NOT enforceable under any circumstances in North Dakota. This is the bright-line rule. N.D.C.C. § 9-08-06 provides that a non-compete is void if it applies to an employee, regardless of how the agreement is worded, what territory it covers, how long it lasts, or how much money you earn.
The only exceptions are narrowly defined:
- Sale of business: Non-competes are enforceable in the context of a sale of a business or assets (a protective clause for the buyer).
- Dissolution of partnership: Non-competes in a partnership dissolution agreement are enforceable.
- Dissolution of LLC: Non-competes in an LLC dissolution agreement are enforceable.
These exceptions do not apply to employment relationships. Even if your employer crafts the non-compete as a condition of continuing to work or promotes it as a “business interest protection,” if you are an employee, it is void.
Income Thresholds and Worker Exemptions
Income thresholds are irrelevant in North Dakota because all employment non-competes are void regardless of how much you earn. A CEO and an entry-level worker have identical protection: neither can be bound by an employment non-compete.
There are no “professional exemptions” for doctors, lawyers, executives, or specialized workers. All workers in all industries are protected equally.
What Happens If You Violate One
Because employment non-competes are void in North Dakota, you cannot violate one. If your employer threatens to sue you for violating a non-compete, you can immediately cease negotiations and inform your employer that the agreement is void under state law.
If your employer actually sues you or obtains a restraining order based on a non-compete, you can move to dismiss on the basis that the non-compete is void as a matter of law. A North Dakota court will dismiss the case. Additionally, if your employer has been aggressive in enforcing a void non-compete—such as obtaining an injunction or filing suit—you may be able to recover your attorney’s fees from your employer.
Employers who know or should know that their non-compete is void and still seek to enforce it may face sanctions for frivolous litigation.
Real Situations in North Dakota
Bismarck healthcare worker scenario: A hospital in Bismarck required all employees, including nurses, medical assistants, and administrative staff, to sign non-competes restricting them from working in healthcare within 50 miles for two years. When a nurse left to work at a competing clinic, the hospital threatened legal action. The nurse consulted an attorney, who immediately informed her that under N.D.C.C. § 9-08-06, the non-compete was void. The hospital backed down. The nurse was free to work without restriction.
Fargo technology company case: A software engineer at a Fargo tech company signed a non-compete at the start of employment. When she accepted a role at a competitor, her former employer sent a cease-and-desist letter claiming she had violated the non-compete. The engineer’s attorney responded that the non-compete was void under North Dakota law. The former employer could have sued but would have lost and faced potential attorney’s fee liability. The matter was dropped, and the engineer worked without interference.
Minot financial services situation: A financial advisor in Minot signed a non-compete restricting him from working in financial services within the state for three years, allegedly to protect the firm’s client relationships. When he left to work for another firm, his former employer sued for breach of contract and sought a preliminary injunction to stop him from working. A North Dakota court immediately dismissed the case on the grounds that the non-compete was void as an employment non-compete under N.D.C.C. § 9-08-06. The advisor continued working without interruption.
Common Mistakes North Dakota Employees Make
Respecting a non-compete out of fear or misunderstanding. Many North Dakota employees sign non-competes and then comply with them out of fear, unaware that the agreements are void. Do not limit your job search or career options based on a void non-compete. The law protects you absolutely.
Not confronting an employer who threatens to enforce the non-compete. If your employer threatens legal action based on a non-compete, do not panic or negotiate. Inform them (through an attorney if necessary) that the non-compete is void under N.D.C.C. § 9-08-06. Most employers will back down immediately.
Signing a non-compete without objecting. While you are not legally bound, signing without objection may create confusion later. When presented with a non-compete, you can simply write “Non-compete agreements are void under N.D.C.C. § 9-08-06” on the document and sign, or refuse to sign and note your refusal. This creates a clear record.
What to Do If You Have a Non-Compete
- Understand that the non-compete is void. If you are an employee in North Dakota with a non-compete, it is unenforceable under state law.
- Do not let it limit your career decisions. Job hunt, accept new roles, and move freely without regard to the non-compete.
- If your employer threatens legal action, consult a North Dakota employment attorney who can send a demand letter stating the non-compete is void and may recover your attorney’s fees.
- If your employer obtains a restraining order, file an immediate motion to dismiss on the basis that the non-compete is void as a matter of law.
- If sued, your attorney will move to dismiss and may counterclaim for attorney’s fees if the lawsuit was frivolous.
North Dakota Attorney General (employment law inquiries): https://attorneygeneral.nd.gov/
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Disclaimer: This article is informational and not legal advice. Under N.D.C.C. § 9-08-06, employment non-competes are void in North Dakota. For your specific situation or if threatened by your employer, consult a licensed North Dakota employment attorney. Neither GuacamoleBlog nor its authors provide legal services.