Montana Wage and Hour FAQs

Montana Overtime Law, Wage and Hour Questions

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What is the Montana minimum wage?

The current minimum wage in Montana is $7.25 per hour. Companies not subject to the Fair Labor Standards Act (FLSA) whose annual sales equal $110,000 or less can pay their employees $4.00 per hour. However, if an employee of such a company is producing or moving goods between states or is otherwise subject to the FLSA, he or she must receive the higher minimum wage, either the state or federal rate.

If an employee is fired, how soon should they be paid?

All wages are due immediately to employees who are terminated, except in cases where the employer has a written policy extending this period of time. If a written policy exists, final wages cannot be delayed past the next regularly scheduled pay day or 15 days (whichever first occurs).

If an employee quits, when should they receive their final paycheck?

The worker should be paid on the next regularly scheduled payday or in 15 days, whichever occurs first.

What is the maximum number of hours an employee can work in a single workweek?

Montana wage and hour law does not set a limit for the maximum number of hours an employee can be required to work. An employer can make an employee work as many hours as they deem necessary. However, certain positions may limit the number of hours an employee can work in a single day. Contact the Montana Department of Labor and Industry for a list of these job titles.

Can an employer alter the hours recorded on an employee’s timesheet?

Under Montana wage and hour law, employers are required to keep accurate records. Employers cannot legally change timesheets if the employee has worked the hours recorded. Employees who suspect their timecards are being altered should speak to their employer; request payment for hours worked; and keep their own time records to verify hours worked. If this illegal practice continues, employees should file a complaint with the Wage and Hour Division or contact a Montana wage and hour attorney.

Can an employer withhold a paycheck until a worker returns their keys or uniform?

Employers are not legally allowed to withhold final wages. However, to avoid problems, employees should return their keys, uniforms, equipment, etc. upon termination.

When are workers entitled to overtime pay?

Most Montana employees are entitled to overtime pay (1.5 times their regular rate) for hours worked in excess of 40 during a single workweek. Even though total weekly hours (hours worked plus vacation time, holidays etc.) may exceed 40, employees are only entitled to overtime after completing 40 hours of actual work. However, certain exceptions exist under Montana overtime law. For instance, agricultural workers, executives, administrative employees, professionals and outside sales people are typically exempt from overtime.

Can an employer force their workers to work more than their scheduled shift?

Yes. Montana employers have the authority to require their employees to work as many hours as needed. Employers can terminate workers who refuse to work additional hours without violating Montana wage and hour law.

Are Montana workers entitled to time-and-a-half compensation when working a holiday?

Montana wage and hour law does not require employers to offer premium pay to employees who work holidays. Premium pay for working holidays is a benefit that may be offered at the employer’s discretion.

Does a company have to pay workers for unused vacation leave upon termination?

Although private sector employers are not required to offer vacation leave, many choose to offer this as an incentive. Once an employee earns vacation days in accordance with the company’s policy, these days are considered wages and are due and payable to the worker. “Use it or lose it” policies are not allowed in Montana. However, employers can set a limit or cap on the amount of vacation days an employee can accumulate.

Can employers make deductions from their workers’ paychecks?

Employers can deduct for items legally required by the law, such as state taxes, federal taxes, social security, etc. They can also make deductions when an employee provides written authorization to do so and the deduction is for the worker’s benefit. Montana employers cannot withhold wages for damages, mistakes or cash shortages. Employers must provide their workers with pay stubs outlining their deductions.

Are workers entitled to meal or rest periods?

Montana employers are not required to offer meal or rest breaks. However, the employer can choose to create their own break policy to increase workplace productivity. If an employer offers short rest breaks, this time must be compensated. Employers are not required to pay workers for meal periods lasting 30 minutes or longer as long as the employee is completely relieved of their job duties.