Check Your Agreement Risks

Non-Compete Laws in North Dakota2026 Guide

North Dakota bans non-competes — every contract restraining a lawful profession is void. But non-solicitation and non-disclosure agreements remain enforceable, and employers use these as backdoor non-competes.

North Dakota Non-Compete Law: Ban Overview

Last updated March 2026. For informational purposes only — does not constitute legal advice. Consult a licensed attorney in North Dakota for guidance on your specific situation.

§ 1. The Ban: What It Covers

N.D. Cent. Code § 9-08-06. Non-competes are void under North Dakota Century Code § 9-08-06. Every contract restraining anyone from exercising a lawful profession, trade, or business is void.

§ 2. Exceptions to the Ban

While North Dakota broadly prohibits non-compete agreements, the following exceptions remain:

  • Sale-of-business exception
  • Dissolution of partnership

§ 3. Choice-of-Law Clauses: The Hidden Risk

Even though North Dakotabans non-competes, your agreement may contain a choice-of-law clause selecting another state's law — for example, "This agreement shall be governed by the laws of Delaware." If your employer is headquartered in a state that enforces non-competes, they may argue that state's law applies to your agreement. Whether such a clause is enforceable against a North Dakota resident depends on several factors, including where you performed work, where the employer is located, and recent legislation addressing this exact issue.

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§ 4. Non-Solicitation & NDAs: Still Enforceable

North Dakota's ban on non-competes does not extend to non-solicitation agreements or non-disclosure agreements (NDAs). Employers can still prohibit you from soliciting their clients, customers, or employees after you leave. These restrictions can be broad enough to function as de facto non-competes, depending on how they are drafted. If your agreement includes non-solicitation or confidentiality provisions, those may remain fully enforceable even though the non-compete clause itself is void.

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Practitioner Notes

One of the oldest non-compete bans in the US. Non-disclosure and non-solicitation agreements may still be enforceable.

For informational purposes only. Consult a licensed employment attorney in North Dakota for advice specific to your circumstances.

Sample Report

What you’ll get

Choice-of-Law Risk Assessment

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MODERATE RISK

Choice-of-Law Risk

Your agreement contains a Delaware choice-of-law clause, but recent legislation in your state...

This determination is based on a cross-reference of your specific compensation against the statutory threshold, the duration of your restriction, your industry classification, and the circumstances of your departure. The following sections detail each factor.
Unlock Your Full Analysis

Personalized analysis

Is your agreement really just a non-compete?

Even in a ban state, choice-of-law clauses and non-solicitation terms can bind you. Find out what applies to you.

The area your non-compete says you can't work in

Some contracts say "governed by the laws of [state]." If you're not sure, skip this.

National Precedent

Notable non-compete cases

These nationally significant cases illustrate common non-compete disputes.

Employee won2016 · IL · Food Service

Jimmy John's Forced Sandwich Makers to Sign Non-Competes Barring Work at Any Deli

Jimmy John's required its sandwich makers and delivery drivers -- workers earning near minimum wage -- to sign non-compete agreements prohibiting them from working at any business that sold 'submarine, hero-type, deli-style, pita, and/or wrapped or rolled sandwiches' within two miles of any Jimmy John's location in the United States for two years after leaving. The Illinois Attorney General filed a lawsuit in June 2016, and the New York Attorney General launched a separate investigation. Workers who wanted to leave for a better-paying food service job were effectively locked out of the entire sandwich industry.

Outcome

Jimmy John's agreed to stop using non-compete clauses in hiring packets nationwide, paid $100,000 to fund education and outreach programs, and was required to notify current and former employees that their non-competes would not be enforced.

Source: CNBC→
Employee won2025 · National · Pet Services

Pet Cremation Company Locked 1,800 Workers -- Including Hourly Laborers and Drivers -- Into Nationwide Non-Competes

Gateway Services, the largest pet cremation business in the U.S. with over 100 locations serving 17,000 veterinary clinics, imposed non-compete agreements on nearly 1,800 employees prohibiting them from working anywhere in the pet cremation industry in the entire United States for one year after leaving. The agreements were applied without any individualized consideration of an employee's role -- hourly cremation facility laborers, drivers, and customer service staff were subject to the same nationwide restrictions as executives. The FTC filed an enforcement action in September 2025, marking a shift to case-by-case non-compete enforcement after its blanket ban was struck down.

Outcome

In November 2025, the FTC finalized a consent order requiring Gateway to stop enforcing all existing non-competes and banning it from entering into similar agreements in the future, freeing nearly 1,800 workers.

Source: Federal Trade Commission→

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FAQ

North Dakota non-compete questions

Your non-compete may be void — but is yours really a non-compete?

Choice-of-law clauses, non-solicitation terms, and NDAs can still bind you. Find out what actually applies.

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