A North Dakota non-solicitation agreement is a legal contract that prevents an individual from engaging professionally with the employees of a business entity. This prohibition can be applied when purchasing a business or when an employer hires a new employee.
After an employee leaves their job, a non-solicitation contract will stop them from taking their former co-workers with them to start or join another business. In a similar fashion, the seller of a business will be barred from taking any of their former personnel. The form will describe which employees are off-limits, how long the non-solicitation period will last, and whether there will be any time or geographical limits.
- Statutes: Not covered by state statutes.
- Legally Enforceable?: Yes, NSAs are enforceable but only to protect a business’s employees (Warner & Co. v. Solberg, 634 N.W.2d 65 (2001)). Statutes and common law have not addressed non-solicitation agreements that protect an entity’s clients or customers.
Related Forms (2)
North Dakota Non-Compete Agreement – Prohibits the seller of a business entity from joining or starting another business within the same industry and area as their former company.
North Dakota Non-Disclosure Agreement – Prevents the misuse and dissemination of trade secrets and other proprietary information.