Are Non-Competes Enforceable in Montana?
Last updated: 2026-10-07 · Verified against the statutes 2026-10-07
Enforceable if reasonable
Enforced only if reasonable; banned for many health workers
Montana's code voids contracts restraining a lawful trade except on the sale of goodwill or dissolution of a partnership, but the Montana Supreme Court treats employee non-competes as partial restraints enforceable if the employer has a legitimate business interest and the covenant is limited in time or place, supported by consideration and reasonable. An employer that ends the employment generally cannot enforce one. By statute, non-competes and patient non-solicits are void for physicians (all specialties from 2026), nurses, PAs, naturopaths and mental-health professionals.
Check a non-compete
Answer a few questions; the result cites the statute behind each point. Rules verified 2026-10-07. Saved only in your browser.
Thresholds are measured differently by state (salary, cash compensation, W-2 box 1).
Enforceable if reasonable
Montana enforces non-competes that protect a legitimate business interest and are reasonable in time, geography and scope.
- Montana: Enforced only if reasonable; banned for many health workers. MCA 28-2-703
- If employment ends by layoff or termination without cause: An employer that chooses to end the employment normally lacks a legitimate business interest in enforcing the covenant, unless it ended the relationship because of the employee's harmful conduct (Wrigg v. Junkermier, 2011 MT 290). MCA 28-2-703
Other Montana rules to check
- If a court finds it too broad: No settled rule we could confirm.
General information, not legal advice. Enforceability also depends on the exact wording, the employer's legitimate interest and the facts; talk to an employment lawyer before relying on it.
Montana non-compete rules
- Layoffs / firing without cause
- An employer that chooses to end the employment normally lacks a legitimate business interest in enforcing the covenant, unless it ended the relationship because of the employee's harmful conduct (Wrigg v. Junkermier, 2011 MT 290).
- Overbroad covenants
- No settled rule we could confirm
Profession-specific rules
- VoidContracts made or renewed on or after January 1, 2026 may not restrict any licensed physician's practice after termination, or treating or soliciting current patients (practice sales and declining-balance payback terms excepted). Before 2026 this applied only to psychiatrists and addiction-medicine physicians. (effective January 1, 2026) MCA 28-2-724 (HB 620, Ch. 698, L. 2025)
- VoidSame rule for registered nurses, APRNs, physician assistants and naturopathic physicians (contracts made or renewed from April 16, 2025). (effective April 16, 2025) MCA 28-2-724 (HB 198, Ch. 131, L. 2025)
- VoidSame rule for psychologists, social workers, professional and addiction counselors, marriage and family therapists and behavioral health peer support specialists (enacted 2023). MCA 28-2-724
Recent and pending changes
- January 1, 2026: HB 620 extends the health care ban to physicians of all specialties. HB 620 enrolled (Ch. 698)
- April 16, 2025: HB 198 adds nurses, APRNs, PAs and naturopathic physicians. 2025 Laws of Montana, Vol. I
Federal law
There is no federal ban on employee non-competes. The FTC's 2024 Non-Compete Clause Rule (16 CFR Part 910), which would have voided most non-competes from September 4, 2024, never took effect: a Texas federal court set it aside nationwide on August 20, 2024 (Ryan LLC v. FTC). On September 5, 2025 the Commission voted 3-1 to drop its appeals and accept that ruling, and on February 12, 2026 it formally removed Part 910 from the Code of Federal Regulations. State law therefore decides whether a non-compete is enforceable.
Frequently asked questions
Are non-competes enforceable in Montana?
Enforced only if reasonable; banned for many health workers. Montana's code voids contracts restraining a lawful trade except on the sale of goodwill or dissolution of a partnership, but the Montana Supreme Court treats employee non-competes as partial restraints enforceable if the employer has a legitimate business interest and the covenant is limited in time or place, supported by consideration and reasonable. An employer that ends the employment generally cannot enforce one. By statute, non-competes and patient non-solicits are void for physicians (all specialties from 2026), nurses, PAs, naturopaths and mental-health professionals.
Did the FTC ban non-competes in Montana?
No. The FTC's 2024 rule never took effect — a federal court set it aside in August 2024, the FTC dropped its appeals in September 2025 and removed the rule from the Code of Federal Regulations in February 2026. State law controls, though the FTC still challenges some non-competes case by case.
Official Sources
Figures checked against these sources on 2026-10-07Other states
Same category (Enforceable if reasonable): Alaska, Arizona, Connecticut, Delaware, Indiana, Iowa, Kansas, Kentucky
Protect information instead with a confidentiality agreement (NDA generator), or hiring in Montana? Use the offer letter generator.
Not legal advice. Enforceability depends on the agreement's wording and the facts; consult an employment attorney licensed in Montana.