Montana Prohibits Noncompete Clauses for Mental Health Professionals

Against the backdrop of an urgent, national shortage of mental health professionals, some of those professionals in Montana have been struggling to remain in the state if they leave their employers.

Len Lantz, M.D., the interim director of Montana Psychiatric Association (MPA), said he has heard from several mental health professionals stuck in such situations: unable to find new work in their communities or neighboring communities due to strict noncompete clauses in their employment contracts. In response, the MPA worked with APA to craft language for a bill to ban noncompete clauses on behalf of all mental health professionals in the state (including psychiatrists, psychologists, licensed clinical social workers, and others). The legislation was passed with nearly unanimous support and was signed into law in May.

“This is a big win not just for psychiatrists, but for all of our communities in Montana,” said Lantz, who is a psychiatrist in Helena. “The law now blocks large employers from continuing to interfere with our growing workforce. If people come to Montana and they love it, but their employer isn’t treating them well or it’s just not a good fit, they can stay here and continue to serve our community members.”

Noncompete clauses are included in employment contracts and limit where employees can work if they leave their employer. They are intended to prevent employees from working for a competitor (Psychiatric News, “A Call for Advocacy: The Case Against Noncompete Agreements in Psychiatric Practice”). But in states like Montana, where neighboring cities are hours apart, they sometimes force psychiatrists to leave the state or to stop working altogether if they want to remain in their communities.

Lantz heard reports about problems with noncompete agreements from both MPA members and nonmembers during MPA’s yearly gatherings, which led him to start looking into a possible legislative solution. He said MPA was also seeking ways to expand access to mental health care in the state. The group had previously fought psychologist prescribing bills, and rather than continuously urge their legislators to vote no on such bills, Lantz said the goal was to bring new legislation forward that would proactively and safely improve access to mental health care.

MPA worked with APA’s state government relations team to develop the bill and was able to get it introduced thanks to MPA’s existing relationship with state Sen. Jason Small. Further, MPA received a Committee on Advocacy and Litigation Funding (CALF) grant from APA to support hiring a lobbyist who lobbied not just for the noncompete clause bill, but also successful legislation to reform the prior authorization process.

“This is a great example of members reaching out to APA with ideas that turn into impactful legislation,” said Erin Berry Philp, J.D., APA’s director of state government relations.

The legislation comes at a very important time, as well. Montana desperately needs a strong mental health workforce, Lantz said. It has one of the highest suicide rates in the nation.

There is such a need for psychiatrists in Montana that when Julian Thorne, M.D., moved to the state last year, he said he could essentially choose to live in any city and be guaranteed a job. Thorne is MPA’s legislative representative.

Thorne thinks that narrowing the bill’s focus to include only mental health professionals likely helped get it over the finish line, especially as many lawmakers across the country are keenly aware of the ongoing mental health crisis. “Focusing the bill allowed us to talk about our specific experiences and concerns,” he said.

He urged psychiatrists in other states interested in introducing similar legislation to build relationships with their state legislators, explain what patients and their psychiatrists need, and to work closely with APA. “There is a lot of support available to district branches in other states,” he said. ■