This form is a Post-Employment Restrictions on Competition for use with exiting employees exposed to commercial trade secrets or other confidential information as part of their job. This form includes a Noncompetition Covenant as well as other relevant clauses, such as a Savings Clause, a Consulting Option, and an Assignment Clause, that can be integrated into any agreement with the former employee.
North Dakota Post-Employment Restrictions on Competition
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Multi-State
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US-TS8041
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How to fill out Post-Employment Restrictions On Competition?
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FAQ
The more active and valuable an employee, the more dangerous that employee may be if working for a competitor. Nevertheless, California law severely restricts the ability of a company or the ability of a contract to limit the right of an exemployee to compete.
The non-disclosure agreement legally prevents an individual from disclosing vital information obtained while in the employment of the company, thereby deterring other companies from hiring them solely for that benefit.
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.
Four states?California, Minnesota, North Dakota and Oklahoma?have banned noncompete agreements entirely, and many other states have enacted restrictions, such as setting a compensation threshold or requiring advance notice.
Colorado, Illinois, Maine, Maryland, New Hampshire, Oregon, Rhode Island, Virginia, and Washington prohibit non-compete agreements unless the employee earns above a certain salary threshold. Other states, like Iowa and Kentucky, limit the use of non-competes for certain professions such as healthcare workers.
North Dakota is an employment-at-will state, which means that without a written employee contract, employees can be terminated for any reason at any time, provided that the reason is not discriminatory and that the employer is not retaliating against the employee for a rightful action.
The short answer is ?No?, you cannot stop an employees working for competitors for 12 months. The usual way of trying to do this is by putting a restrictive covenant into the contract. That means that you put a noncompete clause in, making it clear that they are not to compete with you after leaving.
The goal of any non-compete agreement is to protect trade secrets. If you can show that your former role did not require you to access trade secrets, you should be able to accept employment with any company.
