North Dakota amended its law regarding non-competes, N.D. Cent. Code § 9-08-06, on August 1, 2019. North Dakota generally prohibits noncompete agreements if they restrain anyone from participating in a lawful profession, trade, or business of any kind. North Dakota’s prohibition contains exceptions, however, in situations regarding the sale of a business or dissolution of a partnership. The 2019 amendments were meant to clarify the limited exceptions.
The changes confirm that part owners of corporations and limited liability companies, not just partnerships, may lawfully agree to a restriction connected with an owner departing the business. The amendment also changes the allowed geographic scope of a non-compete related to the sale of a business. Previously restrictions were limited to “a specified county, city, or a part of either.” The new law changes this to restrictions within “a reasonable geographic area and for a reasonable length of time.”
If you have questions about non-compete law, contact the non-compete attorneys at Trepanier MacGillis Battina P.A.
About the Author:
Nate Snyder is a native of North Dakota but based in Minneapolis, Minnesota. He can be reached at 612.455-6218 or firstname.lastname@example.org.