Can I require employees to sign non-compete agreements in Montana? What are the requirements?

According to Montana law, non-compete agreements are generally unenforceable except in limited circumstances.

Requirements for Non-Compete Agreements in Montana

• Non-compete agreements must be supported by consideration, such as a job offer or a promotion ^[1.1].
• The agreement must be limited in duration, geographic scope, and the type of activity restricted ^[1.1].
• The employer must have a legitimate business interest to protect, such as trade secrets or confidential information ^[1.1].

Exceptions to Non-Compete Agreements in Montana

• Non-compete agreements are enforceable for the sale of a business or the dissolution of a partnership ^[1.1].
• Non-compete agreements are enforceable for executives, management personnel, and officers of a company ^[1.1].
• Non-compete agreements are enforceable for employees who provide unique services or have specialized skills ^[1.1].

It is important to note that the enforceability of non-compete agreements in Montana is highly fact-specific and dependent on the individual circumstances of each case. Therefore, it is recommended to consult with a legal professional before requiring employees to sign a non-compete agreement in Montana.

^[1.1]: MTCO 35-4-111

Source(s):

• [1.1] Application of the Montana Business Corporation Act

Jurisdiction

Montana

• Labor