A Montana Non-Compete Agreement is a legal document that an employer may ask an employee to sign, which prohibits the employee from working for a competitor for a certain period. The agreement may also contain restrictions on the sharing of information related to the employer’s business interests. It is essential to understand the terms and validity of such an agreement before signing it.
Reasonable Uses and Objections
- Enforceable when terminated without cause? – No.
- Employee non-solicitation agreement permitted? – Yes.
- Customer non-solicitation agreements permitted? – Yes.
- Does continuing employment equal sufficient consideration? – No.
Legally Enforceable in Montana?
Yes, a non-compete agreement in Montana is legally enforceable as long as it meets the necessary conditions.
Employers may ask their employees to sign a non-compete agreement to protect information vital to their business and to prevent that employee from sharing information with competitors; however, if a non-compete agreement is unduly harsh or restrictive, then the court system could decide to strike it down.
What’s Protected?
There are several common examples of proprietary information that could be protected by a non-compete agreement in Montana. For example, any information that might provide an employee with an unfair advantage can be protected by a Montana non-compete agreement.
Information about goodwill and customer relationships can also be protected by a non-compete agreement. Finally, trade secrets vital to the interests of the company can also be protected by a non-compete agreement.
Reasonable Use and Exemptions
A Montana non-compete agreement should be limited and restricted in its scope in terms of time and place. These limitations have to be supported by some good consideration, meaning that the employer has to justify why certain limitations are as broad as they are. If the non-compete agreement does not protect a legitimate business interest, then it is generally not enforceable.
Finally, the non-compete agreement cannot impose an unfair burden on the employee, and it cannot run counter to public interests. If a judge finds that the non-compete agreement violates any of these points, then it could be struck down.
Limitations on Time
A Montana non-compete agreement should be reasonable in terms of its duration. It cannot limit the employee unfairly, and if it’s too long, it won’t be enforceable.
Geographical Limitations
There are no specific geographical limitations on a Montana non-compete agreement, but if the non-compete agreement is too broad, then it could be deemed unduly harsh for the employee. Therefore, the courts might decide to strike down an agreement that does not have a reasonable geographic limitation.
Sample
Download a Montana non-compete agreement template below in Word and PDF format:
