Montana Non-compete Agreement Template

Suppose you manage any kind of entity in Montana (or in the United States in general) that works in specific fields and handles confidential information. In that case, you might need additional protection for your business. The issue can be resolved by asking your employees to sign the Montana non-compete agreement (or the Montana NCA).

A sample non-competition agreement signed by workers increases the chances of keeping the data hidden. With such forms, workers are warned that they may be penalized if they reveal any of the company’s secrets tied to the business operations, database, software, customers, competitors, colleagues, and other relevant matters.

Unfortunately, with the development of communications today, your employee might accidentally spread the word and not even notice it. That is why the signature left on a non-compete agreement becomes especially valuable today. The key goal of signing such contracts for the company is to prevent its workers from spreading the word to its competitors.

The company independently decides which penalties it will apply to workers who break the agreement’s conditions. In some fields, revealing confidential information may lead to detention and trial.

A “recipient” (or a worker, contractor, partner) and a company are the two parties that sign non-compete agreements. The terms of agreements vary. You may choose to sign a document valid until the end of the working contract or after a while from the end of the contract.

There is a list of items that each non-compete agreement should contain:

  • The company’s and recipient’s names
  • Both parties’ signatures
  • Definition of confidential information
  • Description of information that is not considered confidential
  • Terms upon which the employee should act
  • Effectiveness dates of the agreement
  • Date of signing.

Each American state has its own opinion for non-compete agreements. Some states have clear laws and provisions while others do not suggest any regulations for the topic. Continue reading to find out which norms apply to non-compete agreements in Montana.

Montana NCA Laws and Restrictions

Title 28, Chapter 2, Part 7 of the Montana Code Annotated includes provisions affiliated with non-compete agreements in the state.

A non-compete agreement might lead to the impossibility of employment in some cases such as when a person is restricted from being hired to the competitor’s entity by such an agreement. Generally, non-compete agreements are usually unenforceable in the state of Montana. The courts may consider them void, as stated in Section 28-2-703 of the Montana Code Annotated.

However, exceptions are described in Sections 28-2-704 and 28-2-705. Non-compete agreements in Montana can be made when selling business goodwill or dissolving a partnership.

Suppose you sell business goodwill in Montana. In that case, you may be obliged not to establish a similar business by the purchaser and a non-compete agreement as prescribed in Section 28-2-704.

Section 28-2-705 allows partners dissolving their partnership to sign a non-compete agreement stating that one of them (or all of them) will not start a company in the same field.

Although non-compete agreements are void in Montana, they are not considered illegal.

Thus, any company that wants to protect its data can create such a form with specific provisions about the secrecy and ask its workers to sign it.

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Published: Feb 11, 2021