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 when leaving the company. Such agreements are also known by the term "non-compete clauses". Employees who sign them can 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 know whether a judge will enforce a given non-compete agreement. Even if the employee's interests may be significant 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. Covenants not to compete that a court will categorize as unreasonable include agreements that last for a long duration or that restrict the employee to an unreasonable geographic area around Lewistown.
The agreements must also deal only with those competitors whose line of employment is reasonably related to the previous employer's. Finally, the employer must have a legitimate business interest behind its motivation for mandating a covenant not to compete.
Do I Need an Attorney when Dealing with a Covenant not to Compete?
You might want to hire a Lewistown, Montana lawyer to review the covenant before signing any provisions that may limit or restrict your rights. The lawyer will then be able to negotiate any modifications to the contract as needed, or they can even draft a new one should it be required by one or both parties. Attorneys can provide valuable counseling to employers who are contemplating suing an employer who breached a covenant not to compete. They can also assist employees who have signed an agreement limiting their employment options.