North Dakota Employee Confidentiality and Unfair Competition - Noncompetition - Agreement

State:
Multi-State
Control #:
US-00046
Format:
Word; 
Rich Text
Instant download

Description

The employee desires to be employed by the company in a capacity in which he/she may receive, contribute, or develop confidential and proprietary information. Such information is important to the future of the company and the company expects the employee to keep secret such proprietary and confidential information and not to compete with the company during his/her employment and for a reasonable period after employment.


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FAQ

Many Non-Competes are unenforceable because they restrict competition across too broad of a territory. Non-Competes usually describe a restricted area in which the employee cannot compete.

You Can Void a Non-Compete by Proving Its Terms Go Too Far or Last Too Long. Whether a non-compete is unenforceable because it covers too large of a geographical area or it lasts too long can depend on many factors. Enforceability can depend on your industry, skills, location, etc.

Non-compete agreements are typically considered enforceable if they: Have reasonable time restrictions (generally less than one year) Are limited to a certain geographic area (specific cities or counties, rather than entire states)

compete clause is not legally enforceable unless it is reasonable. Whether or not it is reasonable should, under current law, be decided by reference to the circumstances at the time it was entered into.

The purpose is to prevent you from leaking confidential information that might help the competitors. Unlike the NCC, you are able to start your own business or work for a competitor but you just can't use the proprietary or confidential information you gained during employment at the new job.

Generally speaking, non-compete agreements (also sometimes called non-competition agreements, or simply non-competes) are not enforceable in California against former employees.

And the use of a confidentiality agreement means that those who receive the information are obligated to maintain the information in secret, which legally prohibits that disclosure subject to an agreement from being a general disclosure that would defeat a trade secret.

By Janet A. In California, North Dakota, the District of Columbia, and Oklahoma, non-competes are either entirely or largely unenforceable as against public policy. Other states, including Maine, Maryland, New Hampshire, Rhode Island, and Washington, have banned non-compete agreements for low-wage workers.

Courts do not enforce illegal agreements. Prior to 2019 many non-competes contained illegal clauses which expanded beyond a city or county. The contract language might in fact be legal after 2019.

Confidentiality/non-disclosure agreements are contracts in which the employee promises not to disclose certain proprietary information, such as trade secrets. Non-compete agreements are contracts in which the employee agrees not to unfairly compete against his/her (former) employer.

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North Dakota Employee Confidentiality and Unfair Competition - Noncompetition - Agreement