Montana Non-Compete Agreement Template
Reviewed by the Agiled editorial teamUpdated June 2026
Non-compete law is the most state-divergent area in employment contracting — four states ban these agreements outright, a dozen more impose salary floors or notice rules, and the rest apply judge-made reasonableness tests that differ in temperament. This page covers what Montana requires; the download is our standard non-compete template, to be scoped to Montana's rules below.
Montana non-compete rules at a glance
| Enforceability | Enforceable if reasonable in duration, geographic area, and scope of restricted activity. |
|---|---|
| Protected workers / thresholds | All workers (standard reasonableness test applies) |
| Required formalities | No statutory notice or salary threshold; consideration and reasonableness rules come from case law. |
| Overbroad agreements | Restraints disfavored; courts apply a three-part reasonableness test strictly |
State laws change frequently and this summary is not legal advice. Verify current rules against the state statute or with a licensed attorney before relying on them.
How Montana handles non-compete agreements
Montana courts read non-competes against the backdrop of the state's good-cause discharge law — an employee who can't be fired at will is also harder to restrain after leaving. The practical drafting rule for Montana: enforceable if reasonable in duration, geographic area, and scope of restricted activity.. Before using this template, confirm the current statute — non-compete law has changed in more than a dozen states since 2020, and the FTC's federal ban attempt keeps the area moving.
Montana non-compete agreement FAQs
Are non-compete agreements enforceable in Montana?
Enforceable if reasonable in duration, geographic area, and scope of restricted activity. There is no categorical worker carve-out, so the reasonableness of duration, geography, and scope decides each case.
What happens to an overbroad non-compete in Montana?
Restraints disfavored; courts apply a three-part reasonableness test strictly Draft to the narrowest restriction that protects the actual business interest — the safety net (or lack of one) above is what you're betting on.
What formalities does a Montana non-compete require?
No statutory notice or salary threshold; consideration and reasonableness rules come from case law. Procedural failures are now the most common way non-competes die — more common than substantive overbreadth in states with notice rules.
Does the FTC non-compete ban apply in Montana?
The FTC's 2024 rule banning most non-competes was set aside by a federal court before taking effect and remains in litigation, so it is not currently in force in Montana or any state. State law controls — which is why the state-specific rules above are the ones to draft around.
The full non-compete agreement guide
Clause-by-clause guidance, common mistakes, and the complete template text live on the main page: Non-Compete Agreement Template — full guide and download.