Montana Key Employee Nondisclosure and Noncompetition Agreement

State:
Multi-State
Control #:
US-KWP-0038
Format:
Word; 
Rich Text
Instant download

Description

This form is a Key Employee Non-Disclosure and Non-Competition Agreement. The form provides that this is an employment at will and the employee has the right to terminate his/her employment at any time. The employee also agrees to keep all information obtained as a result of his/her employment confidential. The employee will not interfere with the employer's business in any manner, including, encouraging anyone to leave the employer's company or by encouraging a consultant to sever the relationship with the employer.
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  • Preview Key Employee Nondisclosure and Noncompetition Agreement
  • Preview Key Employee Nondisclosure and Noncompetition Agreement
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FAQ

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.

Non-disclosure agreements (NDAs) and non-compete agreements, also called a non-competition agreement or covenant not to compete, have distinct purposes. Both documents, however, are restrictive covenants that limit what an employee can say or do, and (often) where they can and cannot work.

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.

Under California employment law, such agreements are void and illegal because they impinge on a worker's ability to freely engage in gainful employment of their choosing. However, employee non-solicitation agreements are not always found to be void and illegal by the California courts.

Non-solicitation clauses that are clear, carefully drafted, and suitably retrained in temporal and spatial terms, are often enforceable.

Typically, the only way to fight a non-compete agreement is to go to court. If you are an employee (or former employee) who signed such an agreement, this means you must violate the agreement and wait to be sued. It may be that your former employer has never sued another employee to enforce the non-compete agreement.

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.

Since non-solicitation agreements are generally more specific than non-compete agreements, they are more readily enforced by courts. To be enforceable, non-solicitation agreements must abide by certain rules: Valid business reason.

Non-compete agreements are typically considered enforceable if they: Have reasonable time restrictions (generally less than one year) Are limited to a certain geographic area (specific cities or counties, rather than entire states)

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.

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Montana Key Employee Nondisclosure and Noncompetition Agreement