Montana Payroll Laws (2024 Guide For Employers)

This article will answer the following questions about Montana payroll laws:

  • What are the minimum wage regulations in Montana?
  • How do Montana break laws work?
  • What are the laws around Montana work hours?
  • Are Montana employees paid for jury duty?
  • What are the overtime laws in Montana?
  • What are the child labor laws in Montana?

To stay compliant, you must have a solid understanding of all the rules and regulations.

Let’s dive in and take a look at Montana payroll laws. There is no shortage of misconceptions to clear up.

Disclaimer: Despite our best efforts to provide you with accurate information on this topic at the time of writing, we cannot guarantee the accuracy of the content at the time of reading. This blog post is for informational purposes only and should not be considered legal advice. Consult an attorney for specific guidance on Montana payroll laws.

Montana Labor Laws (Key Areas)

Montana Minimum Wage Laws (Key Insights)

As of 2021, the Montana minimum wage is set at $10.30 per hour, higher than the federal minimum wage of $7.25 per hour.

Employers in the state are required to pay the higher state minimum wage, as stated in Montana Code 39-3-409.

This law applies to employees of businesses with gross annual sales over $110,000. For businesses with lower gross annual sales, the federal minimum wage applies.

Overtime Law in Montana (How Does It Work?)

Montana overtime laws require employers to pay non-exempt employees 1.5 times their regular rate of pay for any hours worked over 40 in a workweek.

The overtime law is stated in Montana Code 39-3-405, which closely mirrors the federal Fair Labor Standards Act (FLSA).

There are exemptions to the overtime law for specific industries and positions, so it is essential to understand whether these exemptions apply to your situation.

Pay Period & Payday Laws in Montana (What Are They?)

Montana law mandates that employers pay employees at least twice per month on established paydays.

These paydays must be no more than 16 days apart.

The pay period must be established by the employer and be communicated to the employees, as stated in Montana Code 39-3-204.

Final Paycheck Laws in Montana (How Does It Work?)

Montana law requires employers to provide a final paycheck to employees who are terminated or laid off within four business days.

If an employee quits, the final paycheck is due on the next scheduled payday or within 15 days, whichever comes first, as stated in Montana Code 39-3-205.

Employment Law in Montana (Key Areas)

Child Labor Laws in Montana (Key Insights)

Montana child labor laws are governed by the Montana Department of Labor and Industry.

These laws dictate the number of hours minors can work, the types of work they can perform, and the necessary permits they must obtain before beginning employment.

Employers must comply with both state and federal child labor laws, which are outlined in the Child Labor Law Reference Guide.

Montana Break Laws (What Are They?)

Montana law does not require employers to provide meal breaks or rest breaks for adult employees.

However, federal law does require that if an employer chooses to provide short rest breaks (usually lasting 5-20 minutes), they must be paid.

Meal breaks (lasting 30 minutes or more) do not need to be paid as long as the employee is free from work duties during the break.

Sick Leave & Time Off Laws in Montana

Montana does not have a specific sick leave law, but employers may choose to provide sick leave as part of their personnel policy.

Federal law does require certain employers to provide up to 12 weeks of unpaid leave for specific family or medical reasons under the Family and Medical Leave Act (FMLA).

Wage Law in Montana (Key Areas)

Training Wage in Montana

Montana law allows employers to pay a training wage of $4.25 per hour for the first 90 days of employment for employees under 20 years of age.

This training wage is lower than the state minimum wage but is permitted under both state and federal law.

Tipped Employees & Tip Credit in Montana

Montana law does not allow employers to take a tip credit against the minimum wage.

Tipped employees must be paid the full state minimum wage of $8.75 per hour.

Employers are also required to ensure that tipped employees receive at least the minimum wage when combining their hourly wage and tips.

Wage Payment Laws in Montana

Montana’s Wage Payment Act governs the payment of wages to employees.

Employers are required to pay all earned wages to employees on regular paydays.

Employees have the right to receive a detailed pay stub, which must include the pay period, hours worked, rate of pay, gross wages, deductions, and net wages.

Unemployment & Workers’ Compensation in Montana

Unemployment Insurance in Montana

Montana’s Unemployment Insurance Division oversees the state’s unemployment insurance program.

Employers must pay unemployment insurance taxes to fund this program, which provides temporary financial assistance to eligible workers who have lost their jobs through no fault of their own.

The Montana Department of Labor and Industry provides information on unemployment insurance eligibility, benefits, and how to file a claim.

Workers’ Compensation in Montana

Montana law requires most employers to carry workers’ compensation insurance to cover employees who suffer work-related injuries or illnesses.

This insurance provides medical care, wage replacement, and other benefits to eligible employees.

The Montana Department of Labor and Industry oversees the state’s workers’ compensation program and provides resources for employers and employees on workers’ compensation claims and benefits.

Montana Employment Law: Special Situations

Military Service & Family Member Leave

Under federal law, employers must provide leave for employees who are called to active military service or who have a family member called to active duty.

The Uniformed Services Employment and Reemployment Rights Act (USERRA) and the FMLA govern these leave requirements.

Independent Contractors in Montana

Montana law distinguishes between employees and independent contractors.

Independent contractors are not covered by many of the protections and benefits provided to employees under Montana labor laws.

Employers must ensure that they correctly classify workers to avoid potential legal issues.

Private Employers & Public Sector Employment

Montana labor laws generally apply to both private employers and the public sector.

However, certain exemptions and additional regulations may apply to public sector employees.

It is essential to understand the specific laws and regulations that apply to your employment situation.

Full-Time & Hourly Rate Workers in Montana

Montana labor laws apply to both full-time and part-time employees, with the same minimum wage and overtime requirements.

Employers must pay employees their agreed-upon hourly rate or salary, provided it meets or exceeds the Montana minimum wage.

For hourly rate workers, it is crucial to keep an accurate record of work hours to ensure proper overtime pay when an employee works more than 40 hours in a workweek.

Work Hours & Employee Rights in Montana

Montana employees have the right to a safe work environment, fair wages, and protection under various state and federal labor laws.

Employers are required to pay employees for all hours worked, including any overtime hours.

Employees have the right to report any labor law violations or unsafe work conditions to the appropriate authorities without fear of retaliation.

Private Sector Employment in Montana

Montana labor laws apply to both private sector and public sector employees.

However, certain exemptions and additional regulations may apply to public sector employees.

Employers in the private sector must comply with all state and federal labor laws, including minimum wage laws, overtime requirements, and child labor laws.

State Law & Minimum Wage Laws in Montana

Montana’s state laws, including the state minimum wage law, work in conjunction with federal laws like the Fair Labor Standards Act (FLSA) to protect employee rights and ensure fair compensation for work.

Employers in the state of Montana must comply with both state and federal laws to avoid legal issues and ensure their employees are treated fairly and compensated appropriately.

Montana Payroll Laws (Closing Thoughts)

When you understand Montana laws, you can navigate the complex landscape created by the rules and regulations. If you can stay across both federal and state labor laws, employers can avoid the hassle of possible legal issues and focus on creating a positive workplace culture for their team members.

Disclaimer: Not Legal Advice

This blog post provides a general overview of Montana labor laws but does not constitute legal advice. Laws and regulations are subject to change, and there may be additional requirements or exemptions that apply to specific situations. Employers and employees should consult a qualified labor law attorney for advice on their specific circumstances.

If you have any questions about your rights or obligations as an employer or employee in Montana, it is essential to consult with a labor law attorney to receive accurate information and guidance tailored to your situation. By seeking professional legal advice, you can ensure that you are taking the appropriate steps to comply with labor laws and protect your rights.

US States

Need Help With Payroll?
Taxes filed for you, automatically.

Let Buddy Punch handle your payroll

Run payroll, pay employees & contractors, all in a few clicks.

Quickly pay your team, no matter where they are,