Montana Noncompetition Agreement - Small Business
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FAQ
Non-solicitation clauses that are clear, carefully drafted, and suitably retrained in temporal and spatial terms, are often enforceable.
In concluding that noncompetes are enforceable in Montana, the court explained, Placed side by side, the tests for enforcement of covenants not to compete in Illinois and Montana do not appear to be meaningfully different. 2012 WL 13019002, 3.
How do I get around a non-compete agreement?Prove your employer is in breach of contract.Prove there is no legitimate interest to enforce the non-compete agreement.Prove the agreement is not for a reasonable amount of time.Prove that the confidential information you had access to isn't special.More items...
By Janet A. In California, North Dakota, the District of Columbia, and Oklahoma, non-competes are either entirely or largely unenforceable as against public policy. Other states, including Maine, Maryland, New Hampshire, Rhode Island, and Washington, have banned non-compete agreements for low-wage workers.
Montana - Non-compete clauses are not enforceable except with the sale of a business or the dissolution of a partnership. Montana courts also do not generally uphold non-solicitation clauses.
You Can Void a Non-Compete by Proving Its Terms Go Too Far or Last Too Long. Whether a non-compete is unenforceable because it covers too large of a geographical area or it lasts too long can depend on many factors. Enforceability can depend on your industry, skills, location, etc.
Despite the similarity of the language, Montana does not follow the lead of California (or Oklahoma or North Dakota, which also have Field Code-based statutes that they interpret to ban noncompetes). Rather, Montana permits noncompetes, so long as they do not operate as a complete restraint on an employee's work.
Under this rule, a non-compete agreement is enforceable if: (1) the covenant is limited to time and place; (2) the covenant is based on a good consideration; and (3) the covenant affords a reasonable protection for and does not impose an unreasonable burden upon the employer, the employee or the public.
