North Dakota voids a contract that restrains anyone from exercising a lawful profession, trade, or business of any kind, and that rule reaches a veterinarian's employee non-compete the same as any other worker's.
There is no healthcare-specific non-compete statute in North Dakota, so nothing separate applies to veterinarians specifically.
Section 9-08-06 carries two narrow exceptions — one for the sale of a business's goodwill, one tied to a partnership, LLC, or corporation dissolution — and the research traces no recent amendment to the section.
Mechanics, not a verdict on your contract
At a glance
Void — employee non-competes are voided by statute
State statute — N.D. Cent.
Code § 9-08-06 (In restraint of business void - Exceptions).
Healthcare statute reaches veterinarians: No healthcare-specific non-compete statute.
Section 9-08-06 voids a contract that restrains anyone from exercising a lawful profession, trade, or business of any kind, subject only to the two exceptions the same section names.
No healthcare-specific non-compete statute exists in North Dakota.
The general void rule in § 9-08-06 applies to a veterinarian's employee covenant the same as it would to any other worker.
Not stated in the sources read.
No duration or geography cap is stated for an employee non-compete, because § 9-08-06 voids that covenant outright rather than permitting it within limits.
The statute's two exceptions do require a "reasonable geographic area" and, for the sale-of-goodwill exception, a "reasonable length of time."
Not applicable — an employee non-compete covered by § 9-08-06 is void, so there is no covenant left for a court to modify.
Section 9-08-06(1) lets a person who sells the goodwill of a business, and that person's partners, members, or shareholders, agree with the buyer to refrain from carrying on a similar business within a reasonable geographic area and for a reasonable length of time — but only if the buyer, or anyone deriving title to the goodwill from the buyer, carries on a like business in that area.
Not stated in the sources read.
Long-standing — the research traces the prohibition to a pre-statehood Field Code lineage; no 2023–2026 amendment was found.
“A contract by which anyone is restrained from exercising a lawful profession, trade, or business of any kind is to that extent void, except:”
Section 9-08-06 frames the rule as a general void, not a reasonableness test: a contract that restrains anyone from exercising a lawful profession, trade, or business of any kind is void to that extent, except for the two things the same section lists.
For an associate veterinarian, a relief veterinarian, or a practice manager reading an offer, that means an ordinary employee non-compete clause — one tied to taking a new job, not to selling an ownership stake — falls within the void rule rather than being weighed for time, geography, or scope.
The statute does not ask whether the restriction is reasonable; it removes the restriction from the category of things a contract can validly impose in the first place, subject only to the two named exceptions.
“A contract by which anyone is restrained from exercising a lawful profession, trade, or business of any kind is to that extent void, except:”
Section 9-08-06(1) is a separate, narrower carve-out from the general void rule: a person selling the goodwill of a business, along with that person's partners, members, or shareholders, may agree with the buyer to refrain from carrying on a similar business within a reasonable geographic area and for a reasonable length of time.
That covenant is only preserved if the buyer, or someone who takes title to the goodwill from the buyer, actually carries on a like business in that area.
Whether a covenant tied to a veterinarian buying into or selling out of a practice qualifies for this exception, rather than falling under the general void rule, depends on the transaction's specific facts — that determination is for an attorney, not this page.
Section 9-08-06(2) covers a related but distinct situation: partners, members, or shareholders may agree not to carry on a similar business, within a reasonable geographic area, upon or in anticipation of a partnership, LLC, or corporation dissolution, or as part of an agreement addressing a partner's or member's dissociation or the sale of their ownership interest.
“A person that sells the goodwill of a business and the person's partners, members, or shareholders may agree with the buyer to refrain from carrying on a similar business within a reasonable geographic area and for a reasonable length of time, if the buyer or any person deriving title to the goodwill from the buyer carries on a like business in that area.”
The research behind this page reads the statute's text; it does not cover what a court does when a covenant is disputed, whether any wage or duration threshold applies beyond the two named exceptions, or how a client or staff non-solicitation clause is treated.
Because § 9-08-06 voids a covered covenant outright rather than permitting one within limits, there is no judicial modification mechanism for a court to apply to an employee non-compete in the first place.
How a North Dakota court treats a non-solicitation clause specifically is not addressed by the sources read for this page.
Those gaps are left blank here rather than filled from another state's rule — take them to a North Dakota attorney with the whole agreement in hand.
Have the agreement itself reviewed
The reasonableness test, what a radius is measured from, the access-to-care argument, and the difference between a non-compete and a non-solicitation clause are covered in the national guide to veterinary non-competes; this page covers only what is specific to North Dakota, which voids employee non-competes by statute, a combination shared with Utah, Wyoming, California and 1 other state in this series. If you plan to use North Dakota Veterinarian Loan Repayment Program (North Dakota’s loan-repayment program, not accepting applications as of September 23, 2026), read any non-compete’s radius against where the qualifying practice would be. The program describes qualifying practice as “Food animal veterinary medicine, full-time in a private practice clinic, in one or more selected North Dakota communities.”
Yes, but not through a healthcare-specific carve-out — North Dakota has no separate statute for veterinarians or other healthcare workers.
Section 9-08-06 voids a contract restraining anyone from exercising a lawful profession, trade, or business of any kind, and that general language covers a veterinarian's employee non-compete the same way it covers any other worker's.
Have a North Dakota attorney who handles veterinary employment agreements confirm how the statute reads against your specific contract.
The research behind this page found no wage or pay threshold in § 9-08-06.
The statute's void rule does not turn on how much the veterinarian earns; it applies to the covenant itself, subject only to the sale-of-goodwill and partnership-dissolution exceptions the same section names.
A North Dakota employment attorney can tell you how that structure applies to your situation.
It can.
Section 9-08-06(1) lets a seller of a business's goodwill, and that seller's partners, members, or shareholders, agree to a restriction on carrying on a similar business — within a reasonable geographic area and for a reasonable length of time — as long as the buyer continues a like business in that area.
That is a separate legal question from an ordinary employee non-compete.
Before signing a buy-in or buy-out agreement, have a North Dakota attorney who handles veterinary practice transactions review the covenant and the purchase agreement together.
The sources read for this page do not address how North Dakota treats a non-solicitation clause specifically, so this page does not answer that question.
Ask a North Dakota attorney whether a specific non-solicitation clause in your agreement is treated the same way as a non-compete under § 9-08-06, and whether that section applies to it at all.
The research behind this page traces § 9-08-06 to a long-standing, pre-statehood Field Code lineage and found no amendment in the 2023–2026 window; a 2026-09-16 re-read of the full statute text confirmed no change from the site's earlier August 2026 verification.
This page was last verified in September 2026.
Legislatures and courts both move this area, so confirm the current text and ask an attorney before relying on it.
North Dakota voids employee non-competes by statute, veterinarians included, so a non-compete in an associate contract is unlikely to hold up.
A client non-solicitation or confidentiality clause is the narrower restraint to consider. Candidates read the covenant before they sign, and a broad one can cost you the hire.
Sources
Sourced from North Dakota’s own statute or leading court decisions (see the citations above).
Verified September 2026; the governing provision was last amended Long-standing — the research traces the prohibition to a pre-statehood Field Code lineage; no 2023–2026 amendment was found.
This page is general information, not legal advice.