Montana Legislative Updates 2026 - HR ALERTS

Montana Legislative Updates 2026

Montana has enacted two changes affecting employers in early 2026. One impacting physician noncompete agreements and another simplifying independent contractor documentation requirements.

Expanded Noncompete Protections for Physicians

Effective Date: January 1, 2026

Montana has expanded its restrictions on noncompete agreements for physicians.

Effective January 1, 2026, noncompete agreements that restrict a physician’s ability to practice medicine or treat patients are prohibited for all licensed physicians in Montana.

Previously, this protection applied only to psychiatrists and physicians providing addiction medication treatment. The new law broadens the scope to include every licensed physician, regardless of specialty.

What this means for employers:

• Physician noncompete clauses in Montana may no longer be enforceable beginning in 2026.

• Employment agreements, independent contractor agreements, and templates should be reviewed and updated ahead of the effective date.

• Employers may still consider alternative tools such as confidentiality, nonsolicitation (where permissible), or repayment agreements, but these should be carefully evaluated for compliance.

Reference: MT H.B. 620, amending MCA § 28-2-724 

Notarization Requirement Removed for Independent Contractor Certificates

Effective Date: February 7, 2026

Montana has eliminated the requirement that applications for an independent contractor exemption certificate be notarized.

A declaration signed under the laws of the state of Montana now satisfies the requirement that applications be completed “under oath.”

What this means for employers:

• Independent contractor exemption applications no longer require notarization.

• Administrative processes may be simplified.

• Worker classification standards remain unchanged.

Reference: Montana MAR Notice No. 2025-508.2 (amending ARM 24.35.111 and 24.35.112)

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