My construction company is looking to hire on some sub-contractors and need to know if it is legal in North Dakota to have sub-contractors sign a Non-Compete agreement.
You need a ND lawyer to review the issue with you in detail. Non-competes have to be specfically tailored to meet the legitimate competitive interests of the one protected by them. I am unaware of any absolute prohibition on Non-compete agreements under ND law. But, I don't practice in ND.
Not compete agreements are disfavored in North Dakota. You may be able to tailor some very specific restrictions. You do need an attorney to get it done right.
In North Dakota non-compete agreements are usually only valid when the sale of a business is involved. In other words, the seller of the business can be prevented from not-competing with the buyer. Even then, however, there are limits. That said, you may be able to protect yourself in other ways. You can validly protect trade secrets and confidential information. Certain forms of non-solicitation agreements are also permissible. You can also certainly include a non-compete, but just need to understand it is unlikely to hold up.
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