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New York’s Noncompete Bill Is A ‘Big Domino To Fall’—And The Broadest Ban Yet—In A Growing Movement Against Them – Montana “Allows” Noncompetes.
New York state legislators fast-tracked a bill to Gov. Kathy Hochul’s desk last week that aims to ban noncompete agreements, putting the state in line not only to prohibit the contentious contracts, but be the state with the broadest ban yet and the spark to fuel momentum for passing similar bills in other states.
I occasionally hear people say that Montana prohibits employee noncompetes. It does not. Montana permits employee noncompetes.
It’s a reasonable mistake.
The language in Montana’s noncompete statute (Mont. Code Ann. § 28-2-703) is very similar to California’s well-known Business and Professions code, § 16600 — both originating with the Field Code.
Specifically, Montana’s statute (originally enacted in 1895) provides:
Any contract by which anyone is restrained from exercising a lawful profession, trade, or business of any kind, otherwise than is provided for by 28-2-704 or 28-2-705, is to that extent void.
Russell Beck
