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Non-Compete Laws in Montana

Montana law disfavors non-competes: courts enforce a partial restraint only if it is limited in time or place, supported by good consideration and reasonable, and since 2023 non-competes are barred for many licensed health care providers.

Last checked . General information, not legal advice.

Montana at a glance

Status
Disfavored, enforceable if reasonable (statute)
MCA 28-2-703 voids restraints except as statutes allow; courts review partial restraints for reasonableness and require a legitimate business interest.
Enforceable against employees
Yes, if reasonable
Limited in time or place, based on good consideration and not unreasonably burdensome. Disfavor is greater when the employer ends the job.

Sources

Last checked

The rules in Montana

Are employee non-compete agreements banned, restricted or enforceable in Montana?

Status in Montana: Disfavored, enforceable if reasonable (statute). MCA 28-2-703 voids restraints except as statutes allow; courts review partial restraints for reasonableness and require a legitimate business interest.

Can an employer enforce a non-compete against an employee in Montana?

Yes, if reasonable. Enforceable against employees in Montana: yes, if reasonable. Limited in time or place, based on good consideration and not unreasonably burdensome. Disfavor is greater when the employer ends the job.

Where do the Montana non-compete laws come from?

The rules above come from Mont. Code Ann. 28-2-703, Mont. Code Ann. 28-2-724 and Wrigg v. Junkermier, Clark, Campanella, Stevens, P.C., 2011 MT 290. Each source is linked on this page. We last checked them in October 2026.

Good to know

MCA 28-2-724, enacted in 2023 and amended three times in 2025, bars post-employment practice restrictions for physicians, psychologists, registered and advanced practice nurses, physician assistants, licensed counselors and some other providers, except in the sale of a practice.

In Wrigg v. Junkermier (2011), the Montana Supreme Court said its disfavor of non-competes heightens when the employer ends the employment and still seeks to enforce one.

What this means in practice

Read the restriction closely before signing. Note how long it lasts, the area it covers, which activities it bars and which state's law the contract says applies. A choice-of-law clause does not always control, because some states refuse to apply another state's law to their own residents or workers.

Salary thresholds are often adjusted every year for inflation. If a state uses a threshold, check the figure for the year the agreement was signed or is being enforced, and how the statute defines earnings.

A non-compete is different from a non-solicitation or confidentiality agreement. Many states that limit non-competes still allow narrower clauses that protect trade secrets or customer lists. An employment lawyer can explain how the rules apply to a specific agreement.

General information, not legal advice. Laws change, and cities can add their own rules, so check the current statute before you rely on it.