Employee Restrictive Covenant Agreement
Cover Terms
The terms below are incorporated into and form part of this agreement.
| Employer | [Legal name of the entity that employs the employee] | ||||||||
| Employee | [Full legal name of the employee] | ||||||||
| Employee Title / Position | |||||||||
| Effective Date | [Effective date of this agreement — the date the last party signs. It anchors the duration presumptions stated in Cover Terms.] | ||||||||
| Governing Law | North Dakota | ||||||||
| Venue | the state courts located in North DakotaState-law basis the state courts located in North DakotaReference only — not part of this agreement. Select a forum permitted by the non-waivable law applicable to the employee. | ||||||||
| Confidentiality | |||||||||
| Trade Secrets Duration | Perpetual | ||||||||
| Other Confidential Information Duration | 24 months | ||||||||
| Employee Non-Solicitation | |||||||||
| Duration | 24 monthsMarket benchmark HideShow
Why this selected default?Why is this the selected default?24 months matches the modal employee non-solicit term observed in benchmarked, publicly-filed employee agreements; 12 months is the common lighter alternative. The Act sets no express duration presumption for the no-hire category, so the uniquely-essential scope limit does the primary category work; counsel should size the term to the workforce interest actually protected. Showing 3 representative examples. Company names link directly to the underlying SEC filing.
Showing 3 representative examples. Company names link directly to the underlying SEC filing.
Showing 3 representative examples. Company names link directly to the underlying SEC filing.
Showing 3 representative examples. Company names link directly to the underlying SEC filing. See all 3 examples in the complete benchmark →Showing 1 representative example. Company names link directly to the underlying SEC filing. See all 1 example in the complete benchmark →Showing 1 representative example. Company names link directly to the underlying SEC filing. See all 1 example in the complete benchmark →Showing 1 representative example. Company names link directly to the underlying SEC filing. See all 1 example in the complete benchmark →Showing 1 representative example. Company names link directly to the underlying SEC filing. See all 1 example in the complete benchmark →Showing 1 representative example. Company names link directly to the underlying SEC filing. See all 1 example in the complete benchmark → | ||||||||
| Covered Employee Look-Back | 12 months | ||||||||
| Non-Disparagement | |||||||||
| Duration | 24 months |
Standard Terms
1. Defined Terms
“Confidential Information” means non-public information relating to Employer's business, including trade secrets, customer lists, pricing, business processes, technical data, and strategic plans, but excluding information that becomes public through no fault of Employee and excluding Employee's general skills, experience, and public knowledge.
“Covered Employees” means only those employees of Employer with whom Employee worked, or whom Employee supervised or managed, during the 12 months before termination of employment.
“Protected Interests” means Employer's trade secrets, Confidential Information, company property, legally protected business information, and Employer's relationships with its workforce.
“Restricted Period” means the duration specified in Cover Terms for each covenant, beginning on the date Employee's employment with Employer ends for any reason.
“Solicit” means for Employee to directly or indirectly initiate contact with, approach, induce, or encourage a person for the purpose of diverting employment away from Employer. Solicit does not include passively receiving an inquiry that Employee did not initiate, providing a professional reference on request, or responding to a general advertisement or an unsolicited approach.
“Trade Secrets” means information that derives economic value from not being generally known or readily ascertainable and that Employer takes reasonable measures to protect.
2. Timing and Employee Acknowledgements
Employee acknowledges that the confidentiality, company-property, non-disparagement, and non-solicitation obligations in this agreement protect Employer's Protected Interests. The employee non-solicitation covenant does not bar Employee from working for a competitor. This agreement is effective as of the Effective Date listed in Cover Terms. Employee acknowledges having had the opportunity to consult with independent legal counsel before signing this agreement.
3. Confidential Information and Trade Secret Protection
Employee must treat all Confidential Information as strictly confidential. Employee must not use or disclose Confidential Information except as required to perform authorized job duties or with Employer's prior written consent. Employee's obligations regarding trade secrets continue in perpetuity, for as long as the information remains a trade secret under applicable law. Employee's obligations regarding other Confidential Information continue for the period specified in Cover Terms. These obligations do not bar Employee from working for a competitor or serving customers without using or disclosing Confidential Information.
Drafting Note Protection routed through trade-secret and loyalty tools
In a ban state, a North Dakota employer's post-employment protection runs through trade-secret and misappropriation remedies and during-employment loyalty duties, not a covenant against competition . A confidentiality, return-of-property, or invention-assignment clause holds only while it targets misuse of protected information or disloyal conduct; construed to bar ordinary work for a competitor or ordinary dealing with customers, it inherits the void rule of § 9-08-06 rather than the trade-secret safe ground, and gains nothing the misappropriation remedy did not already supply.
4. Permitted Disclosures and Protected Conduct
Nothing in this agreement prohibits Employee from: (a) reporting possible violations of law to any government agency, including the Securities and Exchange Commission, the Equal Employment Opportunity Commission, the Occupational Safety and Health Administration, or any other federal, state, or local agency; (b) making disclosures protected under whistleblower provisions of any law; (c) discussing wages, hours, or other terms and conditions of employment as protected by Section 7 of the National Labor Relations Act, 29 U.S.C. § 157; (d) testifying truthfully in legal proceedings; or (e) filing a sealed complaint in court using Confidential Information without liability. Pursuant to the Defend Trade Secrets Act (18 U.S.C. § 1833(b)), Employee may not be held criminally or civilly liable for disclosing a trade secret in confidence to a government official or attorney solely for the purpose of reporting or investigating a suspected violation of law, or in a sealed court filing.
5. Return, Deletion, and Certification of Company Property
Upon termination of employment, Employee must promptly return to Employer all documents, devices, files, credentials, and other materials containing or relating to Confidential Information. Where permitted, Employee must permanently delete electronic copies of Confidential Information from personal devices and accounts. Employee must certify compliance with this section in writing upon Employer's request.
6. Non-Solicitation of Employees
During the Restricted Period specified in Cover Terms for Employee Non-Solicitation, Employee must not Solicit, recruit, or induce any Covered Employee to leave Employer's employment. This covenant does not prohibit Employee from providing a professional reference on request, hiring a person who responds to a general advertisement not directed specifically at Employer's employees, or working for another employer.
Drafting Note The narrow anti-raiding shelter
An employee non-solicitation covenant clears § 9-08-06 only in the narrow anti-raiding shape the North Dakota Supreme Court left standing: one that penalizes soliciting or influencing an employee to leave, reaches only colleagues the departing worker actually worked with, and leaves the worker free to compete . A version that bars hiring without solicitation, sweeps in the whole workforce, or shades into competing for customers loses that shelter and falls back into the void rule as a restraint of trade. The shelter is also only as strong as the proof: even a lawful anti-raiding clause yields no injunction on a record devoid of competent evidence of actual solicitation .
7. Non-Disparagement
During the Restricted Period specified in Cover Terms for Non-Disparagement, Employee must not make statements that are intended to or reasonably likely to disparage Employer, its officers, directors, employees, products, or services. This section does not restrict Employee from making truthful statements in legal proceedings, providing truthful testimony, making disclosures to government agencies, discussing wages, hours, or other terms and conditions of employment as protected by Section 7 of the National Labor Relations Act, 29 U.S.C. § 157, or otherwise exercising rights protected by law.
8. No Conflicting Obligations
Employee represents that performing duties for Employer and complying with this agreement does not conflict with any prior agreement, court order, or legal obligation binding on Employee. Employee must promptly disclose to Employer any potential conflict that arises during employment.
9. Notice to Future Employers and Other Third Parties
Employer may disclose the existence and terms of Employee's confidentiality, trade-secret, return-of-property, non-disparagement, and employee non-solicitation obligations under this agreement to any prospective employer or business associate of Employee if Employer has a reasonable belief that Employee may breach those lawful obligations. Employee consents to this disclosure.
10. Remedies
Employee acknowledges that a breach of this agreement may cause Employer irreparable harm for which money damages would be inadequate. Employer may seek injunctive or other equitable relief to prevent actual or threatened misappropriation of trade secrets and to enforce Employee's confidentiality, non-disparagement, and return-of-property obligations. Employer may not obtain relief under this agreement that prohibits Employee from working for a competitor. If a party prevails in an action to enforce an obligation under this agreement, the non-prevailing party must reimburse the prevailing party's reasonable attorney's fees and costs to the extent permitted by applicable law. No fee, damages, or forfeiture applies to lawful post-employment competition.
11. Enforceability and Severability
If any provision of this agreement is found to be unenforceable, it is severed and the remaining provisions remain in effect.
Drafting Note Judicial narrowing
For an employment covenant, an invalid restraint is struck rather than trimmed to the bounds of reason: North Dakota's main employment cases apply no general blue-pencil rescue to ordinary post-employment non-competes or customer restrictions, so a savings clause inviting a court to rewrite the restraint has no rule to invoke and the overbroad covenant simply falls .
12. Survival and Expiration of Each Covenant
Each covenant in this agreement survives the termination of Employee's employment for the Restricted Period specified in Cover Terms. Obligations under the Confidential Information and Trade Secret Protection section survive for the Trade Secrets Duration specified in Cover Terms to the extent they relate to trade secrets, and for the Other Confidential Information Duration specified in Cover Terms for other Confidential Information. All other provisions survive to the extent necessary to enforce rights that arose during employment.
13. Assignment and Successors
Employee may not assign this agreement or any rights or obligations under it. Employer may assign this agreement to any affiliate, successor, or acquirer of all or substantially all of Employer's business or assets. This agreement is binding on and inures to the benefit of the parties and their respective heirs, successors, and permitted assigns. Assignment does not expand any obligation under this agreement.
14. Governing Law, Venue, and Dispute Process
North Dakota law governs this agreement, and disputes will be resolved in the state and federal courts located in North Dakota.
Drafting Note Choice-of-law and forum as an exit from the statute
For an employee who primarily lives and works in North Dakota, a foreign choice-of-law or forum-selection clause does not survive where its natural result is enforcing a non-compete against North Dakota work: the North Dakota Supreme Court refused to honor exactly that South Dakota clause because it would route around § 9-08-06 . The foreign-forum statute independently lets a North Dakota court decline an exclusive out-of-state forum whose enforcement would be unfair or unreasonable, so an out-of-state law-and-forum pair copied from a national form is measured against a public policy it cannot contract past .
15. Entire Agreement, Amendment, Waiver, and Electronic Signatures
This agreement constitutes the entire agreement between the parties regarding its subject matter and supersedes all prior agreements, understandings, and negotiations on this subject. This agreement may be amended only in writing signed by both parties. A party's failure to enforce any provision does not waive that party's right to enforce it later. This agreement may be executed in counterparts, including by electronic signature, each of which is an original.
Signatures
By signing this agreement, each party acknowledges and agrees to the restrictive covenant obligations above. Employee confirms having read and understood each provision, including the Cover Terms.
Employer
Employer: [Legal name of the entity that employs the employee]
Signature:
Signatory Name: [Full name of the authorized signatory signing for the employer]
Title: [Title of the authorized signatory signing for the employer]
Date:
Employee
Signature:
Print Name: [Full legal name of the employee]
Date: