Non-Compete Laws in Montana
Not enforceable
Montana prohibits non-compete agreements. A 2026 amendment specifically voids non-competes for healthcare workers including psychiatrists, psychologists, social workers, counselors, therapists, physicians, nurses, and physician assistants. Courts have historically permitted narrowly tailored non-competes intended to protect trade secrets, but the statutory presumption is that they are void.
Key details
| Enforceability | Not enforceable |
|---|---|
| Blue pencil doctrine | No |
| Key statute | Mont. Code Ann. §§28-2-703 through 705; §28-2-724 (effective Jan. 1, 2026) |
Recent changes
January 1, 2026 amendment explicitly prohibits non-competes for a broad range of healthcare workers.
Exceptions and special circumstances
Non-competes may be permitted in connection with the sale of goodwill or a business, or dissolution of a partnership. Courts have occasionally upheld very narrowly tailored agreements intended to protect trade secrets.
What this means for you
Montana generally prohibits non-competes. If your employer is trying to enforce one, consult an attorney, as it may be void under Montana law.
Non-compete laws in Montana: what you need to know
Montana has long been one of the most employee-friendly states in the country when it comes to non-competes. The state's general prohibition on restrictive covenants dates back to its original civil code, and Montana courts have historically been reluctant to enforce agreements that restrict an employee's ability to work. While some courts have occasionally upheld narrowly tailored non-competes designed to protect trade secrets, the statutory presumption is that non-compete agreements are void.
A significant expansion took effect on January 1, 2026, when House Bill 620 extended Montana's non-compete ban to cover all licensed physicians. Previously, the statute applied only to psychiatrists and addiction medicine physicians. The amendment now prohibits contractual provisions that geographically restrict where a physician can practice, restrict a physician's right to treat or consult with current patients, or restrict a physician's right to solicit current patients. This change followed a national trend of states specifically protecting healthcare workers from non-competes.
Montana is also notable for being the only state in the country that is not an at-will employment state (a separate but related area of employment law). Together, these protections create one of the strongest worker-protection frameworks in the nation. Employers in Montana have significantly fewer tools to restrict employee mobility compared to most other states.
The exceptions to Montana's ban are narrow. Non-competes are permissible in connection with the sale of goodwill of a business, the sale of an ownership interest, or the dissolution of a partnership. In these contexts, the seller is trading away their right to compete as part of the business transaction, and the restriction must be reasonable in scope and duration. Employment-based non-competes, however, are presumptively void.
If you are working in Montana and your employer has asked you to sign a non-compete, you should know that the agreement is likely unenforceable. Some employers include non-compete clauses in standard employment contracts drafted for use across multiple states without adjusting for Montana law. If you are unsure whether your agreement is enforceable, an employment attorney can review it and advise you on your rights.
More Montana workplace laws
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Frequently asked questions about non-compete laws in Montana
Montana's statutes create a strong presumption that non-compete agreements are void. However, courts have occasionally upheld very narrowly tailored agreements designed to protect genuine trade secrets. The safest assumption for most employees is that a standard non-compete clause is unenforceable in Montana.
The amendment under House Bill 620 applies to contracts made or renewed after January 1, 2026. If your physician employment contract was signed before that date and has not been renewed, the prior rules may still apply. However, Montana's general statutory presumption against non-competes may still provide protection.
Non-solicitation agreements are treated differently from non-competes in Montana, and they may be enforceable if they are narrowly tailored to protect legitimate business interests. However, for physicians, the 2026 amendment specifically prohibits restrictions on soliciting current patients. For other professions, the enforceability depends on the specific terms.
Montana courts will generally apply Montana law to employment relationships based in Montana. If you work in Montana, there is a strong argument that Montana's non-compete prohibition applies regardless of where the agreement was signed. Consult an employment attorney for advice specific to your situation.
Your employer can include one, but it is likely void and unenforceable under Montana law. You should not feel pressured to accept an offer based on fear of the non-compete clause. If your employer conditions your employment on signing a non-compete, consult an attorney.