Quick Facts — Noncompete Agreement Lawyers

Is a Non-Compete Agreement Enforceable in Montana?

In Montana, non-compete agreements are not enforceable for employment purposes. The Montana code states that contracts that restrict anyone from exercising a lawful profession, trade, or business of any kind is void.

Non-compete agreements are permissible when selling a business or dissolving a partnership. When using a non-compete agreement for either of these purposes, the contract must abide by three essential rules that were established by the Montana courts. These rules are:

  1. The non-compete agreement must be limited in duration and location.
  2. There must be adequate consideration to enter the non-compete.
  3. The contract must be reasonable in that it provides protection for the employer without an unreasonable burden on the other party or the public.

How Long Does a Montana Non-Compete Agreement Last?

The Montana code does not have a set amount of time for how long a non-compete agreement can last. Based on previous court cases, non-compete agreements that have a duration of one years or less are regularly upheld as reasonable and enforceable.

How Do You Get Around a Non-Compete Agreement in Montana?

Non-compete agreements in Montana are strictly regulated. Employers are not permitted to execute non-compete agreements with employees. Any non-compete that is used for employment purposes will be void.

If the non-compete is for the sale of a business or dissolution of a partnership, it must abide by the essential rules or a court will strike it down as unenforceable. If a party wants to get around a non-compete, they must prove that it violates on of the rules.

What Voids a Non-Compete Agreement in Montana?

A non-compete agreement in Montana will be void if it violates the state statute and restrains anyone from exercising a lawful profession, trade, or business of any kind.

Frequently Asked Questions

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Employment

Noncompete Agreement

Connecticut

Asked on Jun 3, 2023

Noncompete agreement and promotions?

I recently accepted a promotion within my company and was asked to sign a noncompete agreement. I am concerned that if I accept the promotion and then leave the company, that I will not be able to take a similar position with another company. I am also worried that if I don't accept the promotion, I may be at risk of being terminated. I need to know what my rights are and what the implications are of signing the noncompete agreement.

Thomas L.

Answered Jun 16, 2023

It depends on the terms of the non-compete and the size of your employer. Without seeing the agreement and knowing the size of your employer, I can't offer more advice.

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Employment

Noncompete Agreement

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Asked on Jun 4, 2023

Noncompete agreement and industry restrictions?

I recently signed a Noncompete Agreement with my current employer. I am looking to explore other opportunities in my industry and want to know what restrictions my noncompete agreement might have on me. I am interested in understanding the limitations of the agreement and if there are any potential implications of taking a job in the same industry.

Danielle G.

Answered Jul 11, 2023

In order to ascertain the limitations and implications, you would need to review the specific language of the agreement. If the non-compete is very broad, it's possible it would not be enforceable. In New York, for a non-compete agreement to be enforceable, it must be for a reasonable period of time and limited geographic scope. It also must protect the employer's legitimate interest. For example, the restrictions must protect confidential information or specialized skills you gained while on the job, or some other legitimate interest. If the agreement goes beyond those limitations, a court could find the non-complete to be unreasonable and unenforceable, in whole or in part. As to what restrictions your specific non-compete imposes (and the reasonableness of those restrictions), you would need to look at the specific language in the agreement. If you are unsure about the limitations, you should seek advice of counsel to help decipher the extent it would apply to your industry in general, and the likelihood it would be enforceable in court.

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I am an employee at a company that has recently asked me to sign a noncompete agreement. I am considering doing so, but I am concerned about whether or not the agreement would prevent me from taking on additional freelance work outside of my normal job. I am interested in moonlighting and need to know if a noncompete agreement would limit my ability to do so.

Curt L.

Answered Jun 6, 2023

If you moonlighting work is in the same business and same market, it is almost certainly prohibited by a noncompete agreement.

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Asked on Dec 12, 2023

Employee contract, such as non compete/non solicit, could having this contract ever result in criminal/jail time?

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Matthew S.

Answered Dec 16, 2023

No, at worst, it is a breach of a contract which is a civil matter to be handled in civil court.

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Noncompete Agreement

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Asked on May 19, 2023

Noncompete agreement choice of law?

I recently accepted a job offer with a new employer and they sent me a Noncompete Agreement to sign. I have some questions about the agreement, specifically related to the choice of law. My former employer and I are in different states, and I want to make sure I understand the implications of the agreement before signing.

Venus C.

Answered May 23, 2023

Congratulations on your new job. Generally, a choice of law clause contained in a non-compete agreement indicates which state law will govern the contract. By way of general example, let's pretend we have a non-compete agreement that states the choice of law is Florida. Let's also pretend the parties to this agreement had a dispute and one party filed a lawsuit against the other in the state of New York. In this pretend scenario, because the parties agreed Florida to be their choice of law for the non-compete agreement, the court in New York would abide by that contractual agreement and apply Florida law. While choice of law clauses are commonly used to indicate what law will apply to a contract, the language used or omitted plays a significant role in their interpretation and enforceability.

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