Employers in Montana are not required to offer vacation time. However, according to Opinion Letter 56 from September 17, 1949, earned vacation pay is considered wages and must be paid as such. “Use it or lose it” policies are not allowed, but employers can set caps or maximum accumulation limits.
Montana Labor Laws
Montana Minimum Wage
In 2021, the minimum wage in Montana was set at $8.75 per hour.
History of Montana Labor Laws
In 1980, Montana’s minimum wage was $2 per hour, compared to the federal rate of $3.10. By 2000, Montana’s rate had risen to match the federal rate of $5.15 per hour. In 2011, Montana’s minimum wage exceeded the federal rate by $0.10. As of 2021, Montana’s minimum wage is $1.50 higher than the federal rate set by the Fair Labor Standards Act.
Montana Labor Law Posters
Simplify labor law compliance and make workplace policies visible with J. J. Keller state and federal labor law posters.
Municipality Minimum Wage Laws
While Montana does not prohibit its municipalities from establishing their own minimum wage rates, none have chosen to do so.
Montana Minimum Wage Exemptions
Not every employer in Montana is required to pay the state minimum wage. Some businesses may pay $4 per hour if they meet the following criteria:
- They are not covered by the Fair Labor Standards Act (FLSA).
- Their gross sales are $110,000 or less.
However, if an employee is involved in interstate commerce or otherwise covered by the FLSA, the employer must pay the higher of the federal minimum wage or the Montana minimum wage.
Exemptions from Minimum Wage
Certain employees are exempt from the minimum wage requirements under Montana law, including:
- Students in distributive education programs established by accredited educational agencies (with prior approval).
- Individuals employed in private homes for menial chores like babysitting, lawn mowing, and sidewalk cleaning.
- Individuals employed directly by the head of a household to care for dependent children.
- Immediate family members of the employer or those dependent on the employer for at least half of their support.
- Non-regular employees of nonprofit organizations who volunteer their services on a fully or partially reimbursed basis.
- Individuals with disabilities engaged in work incidental to training or evaluation programs, or whose earning capacity is severely impaired (with prior approval).
- Apprentices or learners exempted by the commissioner for up to 30 days of employment (with prior approval).
- Learners under 18 employed as farm workers, with an exclusion period not exceeding 180 days from the initial employment date, and wages not less than 50% of the minimum wage.
- Retired or semi-retired individuals performing part-time incidental work as a condition of their residence on a farm or ranch.
- Individuals employed in bona fide executive, administrative, or professional capacities, as defined by regulations, or in certain computer-related occupations earning at least $27.63 per hour, or in outside sales.
- Individuals employed by the United States government.
- Resident managers in lodging establishments or assisted living facilities who live on-site as part of their employment terms.
- Direct sellers as defined in 26 U.S.C. § 3508.
- Participants in public assistance programs authorized by Title 53, placed in work settings to develop employment skills, with exclusions not applying to employment relationships formed outside the scope of these activities.
- Foster parents licensed under 52-2-621, providing care without wage compensation to no more than six foster children in their own residence, with reimbursement for room and board, training, respite care, leisure activities, and other needs.
- Domestic service employees providing companionship services or respite care for individuals unable to care for themselves due to age or infirmity, as defined in 29 C.F.R. § 552.6 and 29 U.S.C. § 213(a)(15), when employed directly by a family member or legal guardian.
- Employees of seasonal nonprofit establishments that are organized camps or religious or educational conference centers.
Montana Posting Requirements
Required posters:
- Fair Employment
- Minimum Wage
- No Smoking
- Unemployment Insurance (must be obtained from the state)
- Workers' Compensation (must be obtained from the state)
Tipped Wage in Montana
Montana’s wage and hour laws do not permit a tip credit.
Overtime Wage in Montana
Employees who work more than 40 hours in a workweek must be paid time-and-a-half their regular rate of pay for those extra hours.
Overtime Exemptions
Student employees at seasonal amusement or recreational areas who are provided room and board are exempt from overtime pay until they exceed 48 hours in a workweek.
The list of overtime exemptions includes those exempt from minimum wage and expands to cover:
- Employees under the jurisdiction of the United States Secretary of Transportation, who can set qualifications and maximum hours of service under 49 U.S.C. § 31502.
- Employees of employers subject to 49 U.S.C. § 10501 and 49 U.S.C. § 60501, under the Interstate Commerce Act.
- Individuals employed as outside buyers of poultry, eggs, cream, or milk in their raw or natural state.
- Salespersons, parts persons, or mechanics paid on commission or contract basis, primarily engaged in selling or servicing automobiles, trucks, mobile homes, recreational vehicles, or farm implements, employed by nonmanufacturing establishments selling these items to ultimate purchasers.
- Salespersons primarily engaged in selling trailers, boats, or aircraft, employed by nonmanufacturing establishments selling these items to ultimate purchasers.
- Salespersons paid on commission or contract basis, primarily engaged in selling advertising for radio or television stations.
- Employees employed as drivers or driver’s helpers making local deliveries, compensated on trip rates or other delivery payment plans, provided the plan aims to reduce hours worked to or below the maximum workweek applicable under 39-3-405.
- Employees in agriculture involved in the operation or maintenance of ditches, canals, reservoirs, or waterways that are not for profit, not on a sharecrop basis, and used exclusively for agricultural water supply and storage.
- Employees in agriculture working for a farmer, even if they also work in livestock auction operations, provided they are primarily employed in agriculture and paid at least the wage rate prescribed by 39-3-404.
- Employees of establishments recognized as country elevators, including those selling products and services for farm operations, with no more than five employees.
- Drivers employed by taxicab businesses.
- Employees and their spouses working for nonprofit educational institutions as house parents for orphans or children with one deceased parent, residing in the institution’s facilities, receiving board and lodging, and compensated at an annual rate of at least $10,000.
- Employees involved in planting or tending trees, or in forestry operations, if the employer has no more than eight employees in these operations.
- Employees of sheriff’s offices working under an established work period instead of a workweek, as per 7-4-2509(1).
- Employees of municipal or county governments working under a collective bargaining agreement or mutual agreement, with overtime paid for hours exceeding 40 in a seven-day period.
- Employees of hospitals or establishments caring for the sick, disabled, aged, or mentally ill, working under a collective bargaining agreement or mutual agreement, with overtime paid for hours exceeding eight per day or 80 in a 14-day period.
- Firefighters working under a collective bargaining agreement with a public employer.
- Police officers in cities of the first or second class working under a work period established by the chief of police, as per 7-32-4118.
- Employees of public safety departments working under a work period established under 7-32-115.
- Employees of retail establishments whose regular pay rate exceeds 1½ times the minimum hourly rate under the Fair Labor Standards Act, and if more than half of their compensation over a month is from commissions.
Child Labor Laws in Montana
The Montana Child Labor Standards Act of 1993 aligns with the federal Fair Labor Standards Act’s child labor provisions. Employers should adhere to federal law when it is more restrictive. The state child labor law applies to all children, including migrant children.
According to Montana law, minors aged 14 and 15 may not work:
- During school hours, except in approved Work Experience and Career Exploration Programs
- Before 7 a.m. or after 7 p.m. (extended to 9 p.m. during the summer)
- More than 3 hours on a school day
- More than 18 hours during a school week
- More than 8 hours on a non-school day
- More than 40 hours during a non-school week
Employer Recordkeeping Requirements in Montana
Employers must maintain the following records for employees subject to the Montana Minimum Wage Law, in no specific format:
- Name
- Social Security number
- Home address
- Date of birth
- Sex and occupation
- Time of day and day of week the workweek begins
- Regular hourly rate of pay and length of pay period
- Hours worked each day and total hours worked each week
- Total daily or weekly straight-time earnings
- Total weekly overtime compensation
- Total additions to or deductions from earnings
- Total wages paid each pay period
- Date of payment and the pay period covered by the payment
Montana Labor Law Questions & Answers
Employers with gross annual sales of $110,000 or less, and who are not covered by the Fair Labor Standards Act, may pay employees $4.00 per hour.
Employees aged 14 and 15 may work:
- 3 hours on a school day (8 hours on a non-school day)
- 18 hours during a school week (40 hours during a non-school week)
Employees who work more than 40 hours in a workweek must be paid time-and-a-half their regular rate of pay.
Montana law does not require meal breaks. However, if provided, they do not need to be paid as long as:
- Employees are completely relieved of their duties
- The break is at least 30 minutes long
Montana Labor Law Posters
Simplify labor law compliance and make workplace policies visible with J. J. Keller state and federal labor law posters.