Montana Non-Compete Agreement
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Montana Legal Requirements
Key MT statutes and obligations that apply to your non-compete agreement.
Requirements
- Montana law (Mont. Code Ann. §28-2-703) prohibits non-compete agreements for employees — there is no general employee non-compete allowed in Montana
- The only recognized exception is for the sale of a business: the seller may agree not to compete with the buyer in the same market (§28-2-703(1)(b))
- Non-disclosure and confidentiality agreements protecting trade secrets are lawful and do not constitute non-competes
Restrictions & Limits
- Any non-compete clause inserted into an employment agreement is void and unenforceable under §28-2-703 — employers cannot use them against Montana employees
- Non-solicitation of employees or customers may also be scrutinized — focus restrictions narrowly on trade secret protection and confidentiality
- For business sale transactions, the non-compete must be ancillary to the sale, limited in scope, and proportionate to the business's goodwill value
Official Statute References
Primary Montana statutes governing this document type.
Montana Non-Compete Agreement FAQ
Common questions about non-compete agreements under Montana law.
Are non-compete agreements legal for employees in Montana?
No. Montana law (§28-2-703) prohibits non-compete agreements against employees. Only the narrow exception for the sale of a business applies. Employers should rely on NDAs and trade secret law (Montana Uniform Trade Secrets Act, §30-14-401 et seq.) instead.
Can a Montana employer use a non-solicitation clause instead?
Non-solicitation clauses are not explicitly addressed by §28-2-703 but are viewed with similar skepticism. Courts will analyze whether the clause functions as a disguised non-compete. Narrow clauses protecting specific trade secret-linked customer relationships are more likely to survive.
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Non-Compete Agreement by State
Laws vary significantly by state. Find the right form for your location.
Disclaimer: LegalLawDocs.com provides self-help legal documents for informational purposes only. The documents and information on this site do not constitute legal advice and are not a substitute for consultation with a licensed attorney. Laws vary by state and change frequently — review your document with a qualified professional before relying on it.