Are Non-Competes Enforceable in North Dakota?
Last updated: 2026-10-07 · Verified against the statutes 2026-10-07
Banned
Void for all workers; exceptions only for selling a business
North Dakota voids any contract that restrains anyone from a lawful profession, trade or business. The only exceptions let a seller of a business's goodwill (or owners on dissolution, dissociation or sale of an ownership interest) agree not to compete within a reasonable area and time. The North Dakota Supreme Court has refused to enforce an out-of-state choice-of-law and forum clause that would undercut this policy.
Check a non-compete
Answer a few questions; the result cites the statute behind each point. Rules verified 2026-10-07. Saved only in your browser.
Thresholds are measured differently by state (salary, cash compensation, W-2 box 1).
Likely unenforceable
Based on what you entered, a North Dakota court would most likely refuse to enforce this non-compete.
- North Dakota: Void for all workers; exceptions only for selling a business. N.D.C.C. 9-08-06
Other North Dakota rules to check
- Choice of law and venue: An out-of-state choice-of-law/forum clause was held unenforceable as contrary to North Dakota's public policy against non-competes (Osborne v. Brown & Saenger, 2017).
- If a court finds it too broad: Not applicable — covenant is void.
General information, not legal advice. Enforceability also depends on the exact wording, the employer's legitimate interest and the facts; talk to an employment lawyer before relying on it.
North Dakota non-compete rules
- Statute
- N.D.C.C. 9-08-06
- Independent contractors
- Covered by the statute.
- Choice of law / venue
- An out-of-state choice-of-law/forum clause was held unenforceable as contrary to North Dakota's public policy against non-competes (Osborne v. Brown & Saenger, 2017).
- Overbroad covenants
- Not applicable — covenant is void
Federal law
There is no federal ban on employee non-competes. The FTC's 2024 Non-Compete Clause Rule (16 CFR Part 910), which would have voided most non-competes from September 4, 2024, never took effect: a Texas federal court set it aside nationwide on August 20, 2024 (Ryan LLC v. FTC). On September 5, 2025 the Commission voted 3-1 to drop its appeals and accept that ruling, and on February 12, 2026 it formally removed Part 910 from the Code of Federal Regulations. State law therefore decides whether a non-compete is enforceable.
Frequently asked questions
Are non-competes enforceable in North Dakota?
Void for all workers; exceptions only for selling a business. North Dakota voids any contract that restrains anyone from a lawful profession, trade or business. The only exceptions let a seller of a business's goodwill (or owners on dissolution, dissociation or sale of an ownership interest) agree not to compete within a reasonable area and time. The North Dakota Supreme Court has refused to enforce an out-of-state choice-of-law and forum clause that would undercut this policy.
Did the FTC ban non-competes in North Dakota?
No. The FTC's 2024 rule never took effect — a federal court set it aside in August 2024, the FTC dropped its appeals in September 2025 and removed the rule from the Code of Federal Regulations in February 2026. State law controls, though the FTC still challenges some non-competes case by case.
Official Sources
Figures checked against these sources on 2026-10-07Other states
Same category (Banned): California, Minnesota, Oklahoma
Protect information instead with a confidentiality agreement (NDA generator), or hiring in North Dakota? Use the offer letter generator.
Not legal advice. Enforceability depends on the agreement's wording and the facts; consult an employment attorney licensed in North Dakota.