North Dakota Employee Noncompete (Noncompetition) Agreement
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How to fill out Employee Noncompete (Noncompetition) Agreement?
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FAQ
Typically, the only way to fight a non-compete agreement is to go to court. If you are an employee (or former employee) who signed such an agreement, this means you must violate the agreement and wait to be sued. It may be that your former employer has never sued another employee to enforce the non-compete agreement.
How do I get around a non-compete agreement?Prove your employer is in breach of contract.Prove there is no legitimate interest to enforce the non-compete agreement.Prove the agreement is not for a reasonable amount of time.Prove that the confidential information you had access to isn't special.More items...
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)
If the court finds the non-compete too restricting, it won't hold up. Too broad or unnecessary: If the employer has created unnecessary restrictions on its employees, the court will not uphold the non-competition clauses.
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.
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.
North Dakota allows businesses to protect trade secrets, but it does not allow non-compete contracts, although the line between a trade secret and simply a similar line of work can sometimes be blurry.
Even though North Dakota is adverse to non-compete agreements, they are still allowed in limited applications. In 2019, the North Dakota legislature expanded the allowed application of non-compete agreements. Non-compete agreements are generally governed by North Dakota Century Code § 9-08-06.
- The two most common settings for legitimate non-competition agreements are the sale of a business and an employment relationship.
