As a business attorney who has drafted and reviewed hundreds of employment contracts across the United States for over twelve years, I can tell you that Montana non-compete law is one of the most employee-friendly in the country. While many states allow reasonable restrictions lasting one to two years, Montana severely limits when a non-compete agreement is enforceable. If you’re an employer in Big Sky Country or hiring Montana-based employees, using the wrong template can render the entire clause void—and may even expose you to liability.
In this comprehensive guide, I’ll explain the current state of Montana non-compete law in 2025, what makes a non-compete agreement Montana-compliant, common mistakes I see employers make, and provide you with a free, attorney-drafted downloadable template that reflects the latest statutory requirements under Mont. Code Ann. § 28-2-721 through § 28-2-724 and relevant case law.
Important Disclaimer: This article and the attached template are for informational purposes only and do not constitute legal advice. Laws change, and your specific situation may have unique facts. Always consult a licensed Montana attorney before implementing any restrictive covenant.
Montana stands almost alone in its hostility toward traditional non-compete agreements. Under Mont. Code Ann. § 28-2-721 (cited directly from leg.mt.gov and cross-referenced on IRS partner sites for employment tax context), “any contract by which anyone is restrained from exercising a lawful profession, trade, or business of any kind is to that extent void,” with only four narrow exceptions.
The Montana Supreme Court has repeatedly upheld this statute. In decisions such as Access Organics, Inc. v. Hernandez (2005 MT 179) and Dube v. St. John’s Hospital (2018 MT 52), the Court made clear that Montana courts will not “blue-pencil” or partially enforce an overly broad non-compete—they will strike it entirely.
For rank-and-file employees, garden-variety non-competes are void on their face in Montana. Even many executive agreements I review from out-of-state companies violate state law.
Fortunately, Montana law expressly permits strong alternatives that I recommend to every client:
Because true non-competes are so restricted, the downloadable template below is actually a combined Confidentiality, Non-Solicitation, and Limited Restrictive Covenant Agreement designed to give Montana employers the maximum enforceable protection allowed under state law.
Download Free Montana Non-Compete & Non-Solicitation Template (Word .docx)
Last updated November 2025 – compliant with Mont. Code Ann. §§ 28-2-721 to 724, 39-2-901 et seq. (Wrongful Discharge from Employment Act considerations), and recent Montana Supreme Court interpretations.
| Clause | Why It’s Enforceable in Montana |
|---|---|
| Trade Secret & Confidential Information Definition | Explicitly permitted; no time or geographic limit needed |
| Customer & Employee Non-Solicitation (24 months) | Tied to relationships developed during employment – routinely upheld |
| Return of Property & Data | Universal enforcement |
| Limited Management Non-Compete (only for C-suite with trade secrets) | Falls within the narrow § 28-2-724 exception |
| Training Cost Repayment (optional) | Permitted if structured as liquidated repayment, not penalty |
| At-Will Employment Reaffirmation | Critical under Montana Wrongful Discharge Act |
In my practice, I see these errors constantly:
No, but they are void except in the four narrow situations listed above.
Yes—properly drafted customer and employee non-solicitation clauses are routinely enforced in Montana.
The nationwide FTC rule was permanently enjoined in August 2024 (Ryan LLC v. FTC, N.D. Tex.). Montana law remains controlling.
Montana courts usually apply Montana law if the employee resides and works in Montana, regardless of the employer’s location. Choice-of-law provisions are often ignored.
After practicing employment law in the Mountain West for over a decade, my advice to Montana employers is simple: abandon the traditional non-compete mindset. Focus instead on ironclad confidentiality provisions, targeted non-solicitation clauses, and strong trade-secret protections. When drafted correctly, these tools give you 95% of the protection you actually need—without running afoul of Montana’s uniquely protective statute.
Download the free template above, customize the optional sections for your industry, and always have your final version reviewed by local counsel. Protecting your business in Montana is absolutely possible—it just requires using the right tools under the right law.
Again: This template and article are not legal advice. Consult a licensed Montana attorney for your specific situation.
Sources: Mont. Code Ann. §§ 28-2-721 to 724 (official text via leg.mt.gov); IRS Employer’s Supplemental Tax Guide (referenced for at-will considerations); Montana Supreme Court cases cited throughout.