Montana Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More (2025)

Both public and private employees in Montana are entitled to up to 12 weeks of unpaid leave under the federal Family and Medical Leave Act (FMLA). This leave can be used for childbirth, adoption, or serious health conditions​.

Public employees in Montana are entitled to parental leave under the state parental leave policy. This leave is generally unpaid unless employees choose to use accrued vacation or sick leave. Parental leave can be used for childbirth, adoption, or fostering.

Public employees in Montana are entitled to 12 days of paid sick leave per year after 90 days of continuous employment. Sick leave can accumulate without limits, and upon termination, employees are eligible for a payout of one-fourth of their unused sick leave​.

Private employers in Montana are not required by law to provide sick leave. However, many choose to offer this benefit voluntarily​.

Employees are entitled to take time off for jury duty, but they may be required to present a jury summons as proof. However, leave can be denied if the employee’s work is critical to the operation of a state or government agency. The leave lasts for the duration of the jury service, and employers are not obligated to provide pay during this time.

Public employees are entitled to 120 hours of paid leave per year for military service. Upon returning, employees retain all benefits and employment terms.

Private employers must offer unpaid military leave under federal law (USERRA), but they are not required to provide paid leave.

Both public and private employees who are victims of crimes, or who have family members who are victims, may take unpaid leave to attend related legal proceedings.

Public employees earn vacation leave starting from their first day of employment, and they become eligible for paid vacation after 6 months. Vacation leave is accrued based on the length of service​.

Private employers in Montana are not legally required to offer vacation leave. However, if vacation leave is provided, it must adhere to the company’s written policies or employment contract​.

Public employees may use sick leave to attend the funeral of a close family member.

Private employers are not required to provide bereavement leave, although many offer this benefit voluntarily​.

Public employees in Montana are entitled time off for state-recognized holidays, such as New Year’s Day, Independence Day, and Christmas. If a holiday falls on a day when the employee is not scheduled to work, a “floating holiday” or alternative day off may be granted​.

Private employers are not required to offer holiday leave unless specified in the employment contract.

In Montana, the minimum wage is consistent across the state and does not vary by city or county.

Montana allows certain roles to be paid a sub-minimum wage under specific conditions. Businesses not covered by the Fair Labor Standards Act (FLSA) and with gross annual sales under $110,000 may pay as low as $4.00 per hour. However, employees involved in interstate work must receive the full minimum wage.

Additionally, the following roles can be paid less than the standard minimum wage under Montana law​:

• Students in accredited distributive education programs.
• Private home workers performing menial chores like babysitting or lawn mowing.
• Family members or dependents of an employer.
• Apprentices and learners, exempt for up to 30 days.
• Under-18 farm workers, exempt for up to 180 days, earning at least 50% of the minimum wage.
• Persons with disabilities in training or evaluation programs.

Certain employees in Montana are exempt from overtime pay, including:

• Executive, administrative, and professional employees, as defined by federal regulations.
• Computer professionals (e.g., systems analysts, programmers) earning at least $27.63 per hour.
• Outside sales employees.
• Resident managers of lodging establishments or assisted living facilities who live on-site.
• Certain agricultural workers, apprentices, and learners under specific conditions.
• Employees of nonprofit seasonal establishments like camps or conference centers​.

The current salary threshold is $684 per week ($35,568 per year).

Starting January 1, 2025, the threshold will increase to $1,128 per week ($58,656 per year).

For Highly Compensated Employees (HCEs), the exemption threshold will also change.

Currently, HCEs must earn at least $107,432 per year. Starting January 1, 2025, the threshold will rise to $151,164 per year, with a minimum weekly salary of $1,128​.

Both thresholds will be adjusted for inflation every three years starting in 2027.

Montana is unique in that it does not fully adhere to the “at-will” employment doctrine. In Montana, at-will employment is only applicable during an employee’s initial probationary period, which typically lasts six months to one year. After this period, employers must have “good cause” to terminate an employee, meaning they must provide a legitimate reason for the dismissal, such as poor performance or misconduct.

This law is outlined in the Montana Wrongful Discharge from Employment Act (WDFEA), which protects employees from wrongful termination after their probationary period ends.

Montana is not a right-to-work state, meaning that union membership can be a condition of employment. Employees may be required to join a union or pay union dues as a condition of their employment.

In Montana, employers must obtain written consent before conducting background checks, and they are required to follow state and federal guidelines regarding the use and reporting of information. Criminal history checks are limited to convictions, and certain records, like bankruptcies and civil judgments, have reporting time limits.

Montana’s drug testing laws allow employers to test in safety-sensitive roles, with a written policy provided 60 days before implementation. Recreational marijuana use is not protected if it affects job performance. Employers must comply with both state and federal laws when conducting drug tests.

Montana’s Human Rights Act prohibits discrimination in hiring and employment based on several protected categories, including race, color, creed, religion, national origin, sex, age, marital status, and physical or mental disability.

Employers must ensure that their hiring practices are free from discrimination and provide equal opportunities for all applicants.

Employers must provide written notice of termination to employees upon discharge and are obligated to state the reasons for termination if requested by the employee within 15 working days.

Employees are protected from retaliation for reporting violations of public policy or refusing to engage in illegal activities. This includes protections against wrongful termination for whistleblowing.