A Montana non-compete agreement is a restrictive contract that prohibits an employee from competing against their employer after termination. Drafted by the employer, and signed by both parties, a non-compete aims at protecting the employer’s company and all of their business interests. As an employee, signing this type of agreement means they won’t be able to work for a competitor of the company, open up a business in the same industry as the employer, or engage in any business within this industry. Furthermore, the employee is forbidden from soliciting their employer’s clients, customers, contractors, or other employees. A non-compete agreement is an extremely definitive contract that may lead to a limiting outcome in the workforce for any employee that signs such an agreement and is eventually terminated from employment. However, the Montana Supreme Court says a non-compete clause (agreement) is enforceable if; (1) it is limited in operation as to time or place; (2) is based on some good consideration; and (3) affords a reasonable protection for and does not impose an unreasonable burden on the employer, employee, or public. Case cited: Dobbins Deguire & Tucker, P.C. vs. Rutherford, McDonald & Olseon, 708 P.2d 577, 580, 218 Mont. 392, 396 (Mont. 1985).
Non-Compete Limit – No statutorily defined limit.
Non-Solicitation Limit – No statutorily defined limit.