Montana has one of the most nuanced non-compete landscapes in the country. A 19th century statute appears to ban them — but courts have interpreted it to allow carefully drafted agreements. Meanwhile, Montana has been steadily expanding protections for healthcare workers.
Montana's Non-Compete Statute — A Unique Situation
Montana Code Annotated § 28-2-703, enacted in 1895, states that every contract by which anyone is restrained from exercising a lawful profession, trade, or business of any kind is void. This reads like a complete ban — but Montana courts have never interpreted it that way.
Instead, Montana courts have developed common law exceptions that allow non-compete agreements when they are carefully drafted and meet specific requirements. The statutory language and the court-developed exceptions exist side by side, creating a complex legal landscape that requires careful analysis.
📋 Important: Because Montana's statute appears to ban non-competes but courts enforce them anyway, your situation requires specific legal analysis. The outcome depends heavily on how your agreement was drafted and the specific facts of your employment relationship.
Montana's Common Law Non-Compete Requirements
Montana courts will enforce a non-compete agreement when it meets these requirements:
- There must be a legitimate business reason for the restriction
- The restriction must be reasonably necessary to protect that interest
- The restriction must be reasonable in duration and geographic scope
- The employee must have received adequate consideration
- The restriction must not impose undue hardship on the employee
2025 Healthcare Non-Compete Expansion
On April 16, 2025, Montana expanded its prohibition on non-compete agreements for healthcare workers. The new law extends Montana's existing ban to cover:
- Naturopathic physicians
- Registered nurses
- Advanced practice nurses
- Physician assistants
✅ If you are a naturopathic physician, registered nurse, advanced practice nurse, or physician assistant in Montana, your non-compete agreement is prohibited and void under the 2025 law. This is a significant expansion of Montana's pre-existing physician non-compete ban.
Physician Non-Competes in Montana
Montana had already prohibited physician non-competes before the 2025 expansion. The January 1, 2026 clarification confirmed and strengthened this existing ban. Physicians practicing medicine in Montana cannot be subject to enforceable non-compete agreements.
For Non-Healthcare Employees
For employees outside the protected healthcare categories, the common law reasonableness standard applies. Courts evaluate the specific facts of your situation — your role, the information you had access to, the duration and geographic scope of the restriction, and the hardship imposed on you — to determine whether the agreement is enforceable.
Consideration in Montana
Montana requires adequate consideration for a non-compete to be enforceable. Employment at hire is the strongest form. Mid-employment agreements should be supported by additional benefit beyond merely continuing employment.