Montana Labor Laws (2025 Guide)

What’s New in 2025

• Minimum wage increase

Labor Law Posters

Federal labor law posters
State labor law posters

Wage and Hour Laws

Minimum Wage

From January 1, 2025, Montana’s minimum wage is $10.55/hour. This is adjusted by September 30 annually based on the Consumer Price Index. If the federal minimum wage is higher, it applies instead. 

The state minimum wage doesn’t apply to businesses not subject to the federal Fair Labor Standards Act (FLSA) with gross annual sales of $110,000 or less (these employers can pay employees a minimum of $4.00/hour). 

Other specific exemptions to the minimum wage include:

• Agricultural workers.
• Workers in private homes, such as babysitters or gardeners.
• Workers employed directly by the head of a household to care for their children.
• Apprentices and learners (who are exempt for the first 30 days of their employment).
• Bona fide executive, administrative, professional, or skilled computer employees earning at least $27.63/hour.
• Outside salespeople.
• Certain workers with disabilities.

Tipped Minimum Wage

Montana doesn’t have a tipped minimum wage. Employees covered by state law must be paid at least $10.55/hour, whether they receive tips or not. 

Mandatory tip pooling is allowed, as long as the employer notifies employees. The employer, salaried managers, and supervisors can’t participate in tip pools. 

Overtime Laws

Employees must be paid time and a half for any hours worked over 40 a week. 

Montana’s overtime law doesn’t apply to agricultural workers or students employed at a seasonal amusement or recreational area who receive board (although any hours over 48 hours a week must be paid as overtime). 

The same list of exemptions that apply to the minimum wage (see above) also applies to overtime. 

Twenty-five other types of workers are exempt from overtime, including:

• Outside buyers of raw/natural poultry, eggs, cream, or milk.
• Certain salespeople.
• Taxi drivers.

Montana’s Department of Labor and Industry has an overtime calculator for employers and employees. 

Break Laws

Meal and Rest Breaks

Montana employers aren’t required to provide employees with breaks. 

Where employers choose to offer them, short rest breaks must be paid. Meal breaks longer than 30 minutes, when the employee doesn’t work, don’t have to be paid. 

Under state law, state and county governments, municipalities, school districts, and universities must give breastfeeding employees reasonable unpaid break time to express milk. These should run concurrently with any other break time the employee is entitled to. Employers don’t have to provide this if it would “unduly disrupt” operations. (Private employers may need to follow the FLSA’s regulations for providing breaks to breastfeeding mothers.)

Recordkeeping Requirements

Employers must keep records relating to basic employment, earnings records, and wage rate tables for 3 years. Montana otherwise follows federal wage and hour recordkeeping requirements. 

Scheduling Laws

Montana doesn’t have any fair or predictive scheduling laws. As a result, employers don’t have to give employees a certain amount of notice of their schedules. 

Employee Compensation and Benefits

Reporting Time Pay

Montana has no reporting time or “show up pay” requirements mandating that employers pay employees who show up to a shift but are sent home before completing work. Employees must be paid for time worked. 

Payday Frequency and Method

Employers must pay workers within 10 business days of the end of each pay period. The exceptions are when an employee submits a late timesheet—in that case, the employer can pay them in the following pay period. 

Payments can be made in cash, by check, or by direct deposit. Employers must have the employee’s written or electronic consent to pay wages via direct deposit. 

Paystub Requirements

Employees must receive a pay statement every pay period detailing any itemized deductions or confirming no deductions were made. 

Wage Deductions and Garnishments

The only deductions employers can make are those:

• Required by law—for example, taxes.
• Related to board, lodging, or other incidentals (for which there should be a written agreement).

Damages, stock shortages, or errors can’t be deducted from an employee’s pay. 

The limits on wage garnishments in Montana align with federal law. The maximum a judgment creditor can garnish from an employee’s pay is the lesser of:

• 25% of their disposable weekly income.
• The amount that their disposable weekly income exceeds 30 times the federal minimum wage.

Different limits apply for spousal and child support:

• 50% of the employee’s disposable weekly earnings if they have a dependent spouse or child not subject to the child support order.
• 60% of the employee’s disposable weekly earnings if they have no dependents.

Employers can’t fire an employee because of a wage garnishment. 

Final Paycheck Laws

If an employer terminates an employee, their final wages are due immediately. This means within 4 hours or the close of business—whichever is sooner. A written policy can extend this timeframe until the next regular pay day or 15 calendar days—whichever is sooner. 

If an employee quits, the employer must give them their final paycheck by the earlier of their next regular payday or 15 calendar days. 

Where an employee is terminated because of alleged theft, the employer can withhold part of their final paycheck to cover the value of the theft. To do this, the employer must have the employee’s written agreement and file a police report within 7 days of terminating the employee. 

If no charges result from the police report within 30 days, the employer must pay the employee their full final paycheck. 

Workers’ Compensation

Under state law, most Montana employers must have workers’ compensation insurance. They can get this via the Montana State Fund, a private insurer, or by self-insuring with the approval of the Department of Labor and Industry’s Employment Standards Division (ESD). 

Some types of employees are exempt from workers’ compensation coverage. The most common exemptions include:

• Household or domestic workers.
• Casual employees.
• Workers employed by an enrolled tribal member, association, business, or corporation that conducts business within an Indian reservation only.

In the event a worker sustains a work-related injury or illness, workers’ compensation may provide benefits for:

• Medical expenses.
• Lost wages, including temporary total disability, temporary partial disability, permanent partial disability, or permanent total disability.
• Vocational expenses.
• Death benefits.

Workers must notify their employer of their injury immediately (no later than 30 days after it occurs) and complete a First Report of Injury Form. Employers have 6 days after becoming aware of the injury to complete their sections of the form and send it to the insurer. 

For occupational illnesses, employees have 1 year from the date they discovered or should’ve discovered the illness to file a First Report of Injury Form. 

In the event of a dispute regarding workers’ compensation, the parties can ask the Employment Standards Montana Division to mediate the matter. If mediation is unsuccessful, the matter may proceed to the Workers’ Compensation Court. 

Montana’s Uninsured Employers’ Fund provides workers’ compensation benefits for employees working for uninsured employers. 

Unemployment Insurance

The Unemployment Insurance Division (UID) oversees Montana’s unemployment insurance (UI). 

Employer taxes fund UI benefits. Most employers are required to pay UI taxes, which are calculated at various rates on the taxable wage base of each employee. For 2025, the taxable wage base is $45,100. 

Employers can register for a UI account number, file quarterly wage reports, and calculate their UI taxes via UI eServices for Employers.

UI benefits may be available to individuals during periods of unemployment. To be eligible, individuals must:

• Have lost their job or had their hours reduced through no fault of their own.
• Have earned enough in their base period (the first 4 of the last 5 full calendar quarters).
• Be able, available, and actively applying for work.

UI benefits are available for a maximum of 24 weeks. The UID has an online benefits estimator for individuals. 

Individuals receive a Notice of Determination regarding their eligibility for UI benefits. If they or their employer/s disagree with the notice, they have 10 days to request a redetermination.

Appeals of redeterminations go to the Office of Administrative Hearings (parties have 10 days to request a hearing). If either party disagrees with the outcome of a hearing, they can ask for a review by the Unemployment Insurance Appeals Board and then the District Court. 

Workplace Rights and Protections

Discrimination and Harassment

The Montana Human Rights Act prohibits all employers from discriminating against employees or job applicants based on:

• Race.
• Creed.
• Religion.
• Color.
• National origin.
• Age.
• Physical or mental disability.
• Marital status.
• Sex.

Employers also can’t discriminate against workers based on their vaccination status or whether they have an immunity passport, or because they lawfully smoke tobacco or marijuana outside of work hours and off work premises. 

The only exception to discrimination based on disability, marital status, or sex is if the reasonable demands of the job require a distinction. 

Montana also requires employers to pay men and women equally for equal work. 

If someone believes they’ve been discriminated against, they can file a complaint with the Human Rights Bureau for investigation. They must do so within 180 days of the alleged discrimination. 

Complaints filed with the Human Rights Commission that are also covered by federal law are automatically filed with the Equal Employment Opportunity Commission (EEOC). 

After a complaint is filed with the bureau, the parties may voluntarily decide to resolve the matter. Alternatively, an investigator will look into the matter and issue a decision within 180 days. If the investigator finds reasonable cause for discrimination, the bureau tries to conciliate the matter. This involves the parties agreeing to a resolution. 

If the matter can’t be conciliated, it goes before a public hearing where a hearing officer issues a final decision and makes an order for relief. 

Leave Laws

❌ Family and Medical Leave	Montana doesn’t have a family and medical leave plan. However, employees may be covered by the federal Family and Medical Leave Act (FMLA) if their employer has at least 50 employees within a 75-mile radius of the employee’s worksite. The FMLA gives eligible employees access to up to 12 weeks of unpaid leave annually: • For the birth, adoption, or foster placement of a child. • To care for a family member with a serious health condition. • To recover from their own serious health condition. For reasons related to a family member’s military service, including foreign deployment and caring for an injured or ill service member (FMLA leave extends to 26 weeks for military caregivers). To be eligible for FMLA leave, employees must’ve worked for their employer for at least 12 months and at least 1,250 hours in the last 12 months.
❌ Paid Sick Leave	There are no mandatory paid sick leave laws in Montana. Eligible employees may use unpaid FMLA leave to take time off to recover from an illness or injury.
❌ Paid Family Leave	Montana doesn’t have any paid family leave laws.  Eligible employees may be able to take unpaid FMLA for this purpose.
✅ Pregnancy and Parental Leave	Employers must give employees a reasonable leave of absence for pregnancy. This leave doesn’t have to be paid.  Pregnant employees also have the right to be reinstated to their former position or an equivalent role, unless reinstatement would be unreasonable or impossible.  In addition, employers can’t require employees to take maternity leave for an unreasonable length of time.  Eligible employees may be able to use unpaid FMLA leave instead for purposes of pregnancy and parental leave.
❌ Vacation and Personal Leave	Montana employers aren’t required to provide vacation or personal leave. However, many choose to do so.  An employer should follow their written policy when offering paid vacation or personal leave. Employers can’t adopt a “use it or lose it” policy, but they can cap leave accruals.

Other Mandatory Leave

Military Leave	The federal Uniformed Services Employment and Reemployment Rights Act (USERRA) applies to Montana employees. This means employees are entitled to up to 5 years of unpaid, job-protected military leave, as long as they give the required notice.
Jury Duty Leave	Employers can’t prevent employees from attending jury service. There’s no law requiring private employers to offer paid jury duty leave.

Child Labor Laws

The minimum working age in Montana is 14. Children under 14 can work in certain circumstances, including:

• If they’re employed by their parents in non-hazardous occupations.
• On farms, with written parental consent.
• Newspaper deliveries.
• Casual domestic work at someone’s home.
• As actors, performers, or models.

The rules around the hours minors can work and the types of jobs they can do are as follows:

	14 and 15-year-olds	16 and 17-year-olds
School days/weeks	Can’t work: • Before 7am or after 7pm • During school hours • More than 3 hours/school day • More than 18 hours/school week (23 hours/school week for students engaged in an approved work experience or career exploration program)	No restrictions
Non-school days/weeks	Can’t work: • Before 7am or after 7pm (June 1 to Labor Day) • More than 8 hours/non-school day • More than 40 hours/non-school week
Limits on types of work	14 and 15-year-olds are prohibited from working in various types of employment, including: • Manufacturing • Processing • Warehousing • Construction • Loading and unloading goods	16 and 17-year-olds can’t work in certain occupations, including: • Manufacturing or storing explosives • Operating power-driven woodworking machines • Mining • Slaughtering or meatpacking • Excavation • Roofing

Child labor violations by employers can attract penalties of up to $500 or 6 months’ imprisonment. 

Workplace Safety and Health

The federal Occupational Safety and Health Administration (OSHA) has jurisdiction over private workers in Montana, and the Occupational Safety and Health Act applies. 

Under the OSH Act, employers must:

• Provide employees with a safe work environment free from recognized hazards.
• Follow all OSHA standards and procedures.
• Give employees tools and safety equipment.
• Maintain safety and health operating procedures.
• Train employees on workplace safety and health in a language they understand.
• Maintain records of work-related injuries and illnesses (applies only to employers with more than 10 employees).
• Report any workplace deaths within 8 hours and inpatient hospitalizations, amputations, and any losses of eyes within 24 hours to OSHA.

Employees can refuse to work in unsafe conditions and report potential workplace safety and health violations to OSHA without fear of being retaliated against. 

Labor Union Regulations

Montana doesn’t have a right-to-work law. As a result, employers can make joining a union or paying union fees a condition of employment. 

The state’s Public Employees Collective Bargaining Act regulates public employees’ collective bargaining and union participation. 

Private employees are covered by the federal National Labor Relations Act (NLRA). Employee rights under the NLRA include:

• Forming or joining a union.
• Participating in union organization.
• Speaking to other employees about pay and other work conditions.

Employment Contracts and Severance

Employment Contract Laws

Montana isn’t an at-will state (it’s the only one in the US). Instead, the law sets out several scenarios amounting to wrongful discharge by an employer, including scenarios where the employer:

• Retaliates against an employee for refusing to violate public policy or reporting a violation.
• Terminates the employee without good cause after they’ve completed their probation period.
• Violates their own written personnel policy before terminating the employee, in cases where that violation deprived the employee of a fair and reasonable opportunity to keep their job.
• Fires the employee based only on something the employee said that’s protected by free speech, including social media statements.

During the employee’s probation period, the employer or employee can terminate the employment relationship at any time and for any or no reason. There’s an automatic 12-month probation period for employees—unless the employer provides explicitly for another period or no period at all. 

Restrictive Covenants

State law generally prohibits non-compete clauses in Montana, except those relating to the sale of the goodwill of a business or the dissolution of a partnership. However, the courts typically allow reasonable non-compete clauses designed to protect a legitimate business interest. 

Non-competes and non-solicitation clauses for healthcare providers are prohibited. 

Severance Pay

There are no mandatory severance pay requirements in Montana. Employers are free to choose whether to offer employees this benefit. 

Additional State-Specific Employment Laws

Drug and alcohol testing	Montana’s Workforce Drug and Alcohol Testing Act sets out the conditions under which employers can drug and alcohol test employees and candidates.  Employers must have written policies and procedures accessible to all employees, and testing must be conducted according to these policies and procedures. Employees must be given 60 days’ notice of any changes to these.
Social media privacy	Employers are prohibited from asking employees and job applicants for their social media usernames or passwords, to access their social media in front of the employer, or to provide any personal social media information.  Some limited exceptions exist, including where the employee is suspected of misconduct or criminal defamation.
Whistleblower Award and Protection Act	This Act protects whistleblowers in Montana and provides for monetary awards for whistleblowers.

Legal Resources for Employers and Employees

The Montana Department of Labor and Industry offers much information regarding the state’s employment laws for both employers and job seekers. The department’s Employment Standards Division is also useful. 

For employees seeking free legal information and advice, Montana Law Help is a good resource. The Montana Legal Services Association may also be able to help.  

Disclaimer

The information presented on this website about labor laws in Montana is a summary for informational purposes only and is not intended as legal advice. However, laws and regulations regularly change and may vary depending on individual circumstances. While we have made every effort to ensure the information provided is up to date and reliable, we cannot guarantee its completeness, accuracy, or applicability to your specific situation. Therefore, we strongly recommend that readers seek guidance from their legal department or a qualified attorney to ensure compliance with applicable laws and regulations. Please note that we cannot be held liable for any actions taken or not taken based on the information presented on this website.