MONTANA SUPREME COURT SAYS NO TO NON-COMPETE
This doesn’t come from my home state of Virginia but I just couldn’t let this good decision pass without mention. The Montana Supreme Court ruled last week that an employee’s noncompete contract cannot be enforced in the state. The court said that Montana law is tough on contracts which restrain trade (as is Virginia) such as noncompete agreements that restrict an employee’s job opportunities after leaving the current employer.
The case arose from a former employee of Access Organics who was required to sign a noncompete agreement before leaving. A lower court issued a ruling that banned the employee from contacting any of the company’s customers.
The Montana Supreme Court reversed the ruling and held the employee wasn’t justly compensated for the restriction on future opportunities. This is a good decision! An employer cannot tell an employee as he/she heads out the door to sign a binding non-compete.