Can I require employees to sign non-compete agreements in North Dakota? What are the requirements?

Non-compete agreements are generally enforceable in North Dakota, but there are certain requirements that must be met.

Requirements for Non-Compete Agreements in North Dakota

1. Consideration: The employee must receive some form of consideration in exchange for signing the non-compete agreement. This can be in the form of a job offer, a promotion, or some other benefit.
2. Reasonable Restrictions: The restrictions in the non-compete agreement must be reasonable in scope, duration, and geographic area. The restrictions must be necessary to protect the employer’s legitimate business interests.
3. Legitimate Business Interests: The non-compete agreement must be designed to protect the employer’s legitimate business interests, such as trade secrets, confidential information, or customer relationships.
4. Notice: The employer must provide the employee with notice of the non-compete agreement before or at the time of employment.
5. Independent Legal Advice: The employee must be given the opportunity to seek independent legal advice before signing the non-compete agreement.

Jurisdiction

North Dakota

• Labor