Restrictive covenants in employment agreements can be very useful to companies on the leading edge of technology and business innovation. This document is a general checklist of factors employers should consider with respect to the use of such covenants.
Montana Employee Restrictive Covenants
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How to fill out Employee Restrictive Covenants?
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FAQ
Employment. A non-compete for employment purposes is not legally enforceable in Montana as described under law: ?Any contract by which anyone is restrained from exercising a lawful profession, trade, or business of any kind? is to that extent void.?
No. Montana is not an ?at will? state. In some instances, the Wrongful Discharge From Employment Act does not apply, but generally, once an employee has completed the established probationary period, the employer needs to have good cause for termination.
If the employer terminated him simply to save money or for another reason unrelated to the employee's job performance, the employer is most likely not entitled to enforce the restrictive covenants.
The most common types of post-employment restrictive covenants include non-competition clauses and restrictions prohibiting the solicitation of customers/ clients and employees, each of which are in effect both during the employment relationship and for defined period thereafter (e.g. six months).
Enter the restrictive covenant ? a widely used contractual clause in the U.S. which restricts a terminating employee from engaging in various competitive activities for a defined, post-employment period.
Restrictive covenants may contain 4 different types of promises: (1) a promise not to compete with one's former employer; (2) a promise not to solicit or accept business from customers of the former employer; (3) a promise not to recruit or hire away employees of the former employer; and (4) the promise not to use or ...
Alternatively, one could record a termination of covenant, if both parties to the original covenant?or their successors?agree to the termination. Covenants can also be terminated by courts, upon a showing of illegality, abandonment, or even changed circumstances (i.e., inequitable to continue enforcing said covenant).
Restrictive covenants may contain 4 different types of promises: (1) a promise not to compete with one's former employer; (2) a promise not to solicit or accept business from customers of the former employer; (3) a promise not to recruit or hire away employees of the former employer; and (4) the promise not to use or ...
