Generally speaking, in Montana, a covenant not to compete means that the employee will agree not to work for any of their employer's competitors upon leaving the company. Such agreements are also known by the term "non-compete clauses". Employees who sign them may either receive compensation or simply be required to agree as a condition for their employment.
When are Covenants not to Compete Unenforceable?
It is difficult to discern whether a judge will enforce a given non-compete agreement. Even if the employee's interests may be important Montana courts will certainly assign great weight to a person's freedom to choose the type of employment that is suitable for them. Accordingly, only those covenants which are deemed to be reasonable will be upheld by the court. Those provisions that courts have seen to be unreasonable include those that last for an prolonged period of time or cover geographic areas around Great Falls that are unreasonably large.
The agreements must also deal only with those competitors whose line of employment is rationally related to the previous employer's. Lastly, there must be a legitimate business interest which motivates the employer's mandating a covenant not to compete.
Do I Need an Attorney when Dealing with a Covenant not to Compete?
A Great Falls, Montana lawyer can help you review the covenant before you sign any provisions that might limit your rights. The lawyer can assist you in negotiating modifications or if needed, they can possibly draft a new agreement which will be acceptable to both parties. A lawyer can also render useful advice for employers who are considering suing an employee for breach of covenant, or they can counsel employees who have signed such an agreement.