Montana Labor Laws Guide

Montana wage laws

Montana wage laws cover a wide spectrum of employment practices, divided into the following subcategories:

• Minimum wage in Montana,
• Tipped minimum wage in Montana,
• Subminimum wage in Montana,
• Exceptions to the minimum wage in Montana, and
• Montana payment laws.

Montana minimum wage

Starting from January 1, 2024, the minimum wage in Montana amounts to $10.30 per hour.

According to the Employment Standards Division of the Montana Department of Labor & Industry, the minimum wage is reviewed by September 30 each year and adjusted according to the Consumer Price Index.

Furthermore, the newly established Montana minimum wage must always be greater than the federal minimum wage, as well as the previous Montana minimum wage.

Tipped minimum wage in Montana

Montana doesn’t have a state-wise tipped minimum wage. Therefore, employers (covered by the FLSA and with annual sales exceding $110,000) are required to pay employees the standard minimum wage of $10.30 per hour.

However, businesses that aren’t covered by the FLSA and with less than $110,000 in gross annual sales can pay employees a smaller minimum wage of $4.00 per hour.

Subminimum wage in Montana (training wage)

Some US states allow employers to pay their employees a reduced, so-called subminimum wage.

In particular, the subminimum wage can, in some cases, be paid to young adults during the first 90 days of employment (training wage) or to people with physical or mental disabilities.

However, as a general rule — the State of Montana doesn’t allow a subminimum wage. The mentioned categories of workers are still entitled to the regular minimum wage.

Exceptions to the minimum wage in Montana

Regarding the minimum wage in Montana, there’s one major exception. 

Businesses not covered by the Fair Labor Standards Act (FLSA) and with gross annual sales less than $110,000 can pay their employees a smaller minimum wage of $4.00 per hour.

Nonetheless, this is only the case if the employee isn’t producing or moving goods between states. In that case, they’re entitled to the regular state minimum wage.

Montana payment laws

Employers in Montana must provide a written notice to the employee or put postings in noticeable places with information about regularly scheduled paydays and pay rates.

All wages must be paid to the employee at most 10 business days after the wages are due and payable.

🎓 Download the Montana Wage & Hour Poster for 2024

Montana overtime laws

Montana uses the federal FLSA provisions to regulate overtime requirements, as well as its exceptions and exemptions.

Generally speaking, FLSA considers all work exceeding 40 hours in a workweek as overtime work.

All overtime hours worked need to be paid at the rate of 1.5 times the regular rate of pay.

Minimum wage and overtime exemptions in Montana

Certain occupations in Montana are exempt from both the minimum wage and overtime regulations. Some of these occupations include:

• Bona fide executive, administrative, or professional employees paid on a salary basis,
• Computer professionals who earn at least $27.63 per hour,
• Students participating in education programs,
• Individuals working in private homes (e.g., babysitters), 
• Immediate family members of the employer,
• Workers with disabilities,
• Employees working for the US government, and
• Individuals working for a nonprofit or religious organization.

According to the final rule on overtime protection for executive, administrative, and professional employees, these employees must be paid on a salary basis at a rate of no less than $884 per week to be exempt from overtime and minimum wage protection.

🎓 Track Montana Overtime with Clockify

Montana break laws

No federal or state regulations require Montana employers to provide breaks during work hours.

However, if the employer has a policy allowing breaks, the following rules apply:

• Rest breaks — short breaks up to 20 minutes are considered working time and are paid at the regular rate, and
• Meal periods — long breaks of at least 30 minutes are unpaid if the employee is relieved of all duties throughout their duration.

Montana breastfeeding laws

Federal laws aim to enable a supportive workplace environment for breastfeeding employees by establishing special provisions for nursing mothers.

The federal law requires all employers to provide nursing employees with a reasonable break and a private room that meets the following criteria:

• It isn’t used as a bathroom,
• It’s shielded from view, and
• It’s free from intrusion. 

Nursing employees can use these breaks for up to 1 year after the birth of a child.

Additionally, Montana has its own state law, which dictates that public employers must support women who want to continue breastfeeding after returning from maternity leave.

Montana leave requirements

Here, we can review the types of leave required, as well as those not required under Montana law.

Child labor laws in Montana

Montana's Child Labor Standards Act outlines work conditions for minors that wouldn’t be detrimental to their education or well-being.

Child labor laws are mostly concerned with defining legal working hours, as well as prohibited occupations for minors.

Furthermore, the legal working hours are different according to 2 age groups:

• Minors under 16, and
• Minors aged 16 and 17.

Minors under the age of 14 aren’t allowed to be employed.

Labor laws for minors under the age of 16

Minors under the age of 16 can work the following hours:

• From 7 a.m. to 7 p.m. while school is in session (extended to 9 p.m. while school is out),
• Maximum of 3 hours per day when school is in session,
• Maximum of 18 hours per week when school is in session,
• Maximum of 8 hours per day when school isn’t in session, and
• Maximum of 40 hours per week when school isn’t in session.

Labor laws for minors aged 16 and 17

There are no particular work hours restrictions for minors aged 16 and 17.

Prohibited occupations for minors

In addition to work hours restrictions, minors are also protected from working in hazardous occupations. 

Therefore, minors aged 14 and 15 aren’t allowed to work in the following occupations:

• Manufacturing work,
• Food processing work,
• Construction and repairing,
• Warehousing and storing,
• Transportation services, and
• Maintenance work.

Moreover, minors aged 16 and 17 are prohibited from working in the following occupations:

• Mining,
• Manufacturing or storing explosives,
• Operating motor vehicles,
• Operating power-driven machinery,
• Working with radioactive materials or ionizing radiation,
• Wrecking and demolition work,
• Logging and sawmilling, and
• Slaughtering animals and processing meat.

🎓 Montana's Child Labor Law Reference Guide

Hiring laws in Montana

According to the Montana Human Rights Act, employers in the hiring process are prohibited from discriminating against applicants on the basis of:

• Race or color,
• Creed,
• Religion,
• National origin,
• Sex,
• Age,
• Marital status, and
• Physical or mental disability.

No employer can refuse to hire, deny a promotion or other benefits, discipline, or discharge an employee based on the listed characteristics.

Termination laws in Montana

Most US states follow the “at-will” employment doctrine, which means that either the employee or the employer can end the employment relationship at any time without providing a reason.

However, due to the Montana Wrongful Discharge From Employment Act, the State of Montana offers added protection to employees once they’ve completed their probationary period.

The probationary period lasts 12 months, but the employer can extend it to 18 months. Throughout this period, the employee can be fired without a good cause.

After the probationary period ends, the employer must provide evidence of good cause to terminate an employee.

Final paycheck in Montana

Once an employee voluntarily leaves employment, Montana employers need to pay them all due wagesby the next regularly scheduled payday or within 15 days after the termination — whichever comes first.

On the other hand, if the employee is terminated, the employer must pay out their final paycheck at the moment of separation.

COBRA laws

Upon termination or while going through some other major life event — an employee may be eligible for continued health insurance.

The federal Consolidated Omnibus Budget Reconciliation Act (COBRA) allows the continuation of health insurance for up to 36 months.

Most often, the coverage is priced at 102%, but in some cases can go up to 150% (disability extension) of the original cost.

Some of the types of events that could qualify an employee or their dependents for continued health insurance include the following:

• Termination,
• A significant reduction in work hours,
• Divorce,
• A serious health issue that makes the employee unable to work, and
• Caring for a family member with serious health issues.

The federal COBRA law applies to businesses with 20 or more employees. Montana is one of the few US states that doesn’t have the so-called mini-COBRA law, which would offer protection for small business employees (i.e., those working in companies with fewer than 20 employees).

Occupational safety in Montana

Montana doesn’t have an Occupational Safety and Health Administration (OSHA)-approved state plan for occupational safety, so it's subject to the provisions in the federal OSH Act.

This state agency conducts workplace safety inspections to ensure all of its standards are complied with.

🎓 Occupational Safety and Health in Montana

Miscellaneous Montana labor laws

Now, we’ll look at some miscellaneous Montana labor laws that don’t fit into the previously mentioned categories. These include the following:

• Whistleblower protection laws,
• Background check laws,
• Employer use of social media regulations,
• Drug and alcohol testing laws, and
• Record-keeping laws.

Whistleblower protection laws

Under the Montana Whistleblower Award and Protection Act, an employer isn’t allowed to terminate, discharge, or suspend an employee as an act of retaliation due to the employee reporting a fraudulent activity.

However, if an employee makes a false claim intentionally against the employer, they’re not protected from retaliation.

Background check laws

When conducting a background check, Montana employers need to stay within the federal Fair Credit Reporting Act (FCRA) regulations.

As members of the general public, employers can only access limited information on prior arrests and prosecutions on felony charges.

Before attempting to acquire any pre-employment information, the employer must get a written agreement from the applicant.

Employer use of social media regulations

Montana laws prohibit employers from accessing the personal social media accounts of employees and job applicants. These prohibitions include the following:

• Requesting access to an employee's personal social media password,
• Asking the applicant or employee to disclose any other information that would grant the employer access to personal social media accounts, and
• Retaliating in any way against an employee who refuses to provide access to their personal social media accounts.

The exceptions to these requirements are social media accounts opened by the employer for strictly business-related purposes.

Drug and alcohol testing laws

Employers looking to conduct drug and alcohol testing of their employees must follow a qualified testing program.

This program requires the existence of a written policy, with some of the following information included:

• Description of legal sanctions under federal, state, or local law,
• Employer's education program,
• Employer's standards of conduct regarding the use of controlled substances, and
• The list of controlled substances the employer intends to test for.

The testing is conducted at the employer's expense.

Record-keeping laws

Montana Code requires that employers follow certain employee record-keeping practices.

These practices require keeping certain records for up to 5 years, including the following information:

• The beginning and end date of each pay period,
• Total employee wages for each pay period,
• Employee's full name and social security number,
• Dates of promotion, discharge, or employee death, and
• Any special payments, etc.

🎓 Record-keeping regulations in Montana

Frequently asked questions about labor laws in Montana

To make this Montana labor laws guide as comprehensive as possible, we’ve included an FAQ section where we’ll answer the most common questions on this topic.

What are the labor laws in Montana?

The State of Montana uses both federal and state laws to regulate employment. Some of the most important labor laws in Montana include:

• Fair Labor and Standards Act (FLSA),
• Family and Medical Leave Act (FMLA),
• Consolidated Omnibus Budget Reconciliation Act (COBRA),
• Montana Whistleblower Award and Protection Act,
• Montana Human Rights Act, 
• Montana Wrongful Discharge From Employment Act, and
• Montana Military Service Employment Rights Act (MMSERA).

Is it legal to not pay overtime in Montana?

No, it’s not. If a non-exempt employee works more than 40 hours in a week, they’re eligible for overtime compensation, which amounts to 1.5 times their regular rate of pay.

Can you be fired without warning in Montana?

Yes, but only if you’re still in the probationary period of your employment. The default length of a probationary period is 12 months, and employers can fire employees for no reason and without warning during this period. 

However, once the probationary period expires, an employer must provide a valid reason for employment termination.

Is it illegal to discuss wages in Montana?

No, it isn’t. Under Montana law, employers aren’t allowed to forbid employees from disclosing wage information as part of their employment.

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Conclusion/Disclaimer

We hope this Montana labor law guide has been helpful. Please ensure you've paid attention to the links we've provided, as most of them will lead you to the official government websites and other relevant information.

Please note that this guide was written in August 2024, so any changes in the labor laws that were included later than that may not be included in this Montana labor laws guide.

We strongly advise you to consult with the appropriate institutions or certified representatives before acting on any legal matters.

Clockify isn’t responsible for any losses or risks incurred should this guide be used without further guidance from legal or tax advisors.