The Montana Labor Law Guide

Minimum wage is the lowest hourly pay rate that employers are legally obligated to pay employees. While the federal minimum wage serves as a baseline, different states, cities, and regions can adopt their own higher rates.

The current statewide rate is: $10.85 per hour for most employees. 

• Compliance note: Montana adjusts its minimum wage annually based on inflation. Furthermore, a business not covered by the federal Fair Labor Standards Act (FLSA) whose gross annual sales are $110,000 or less may legally pay $4.00 per hour, provided its employees do not individually engage in interstate commerce.

Local jurisdictions: in Montana, the standard minimum wage is set at the state level. Currently, no local municipalities have established their own minimum wage rates that exceed the state or federal baseline. Therefore, the $10.85 rate applies identically across all covered employers in the state.

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Montana law strictly prohibits employers from taking a "tip credit" against an employee's wages. There is no separate or lower minimum wage for tipped employees in the state.

All tipped employees (such as restaurant servers, bartenders, and salon workers) must be paid the full, standard state minimum wage (currently $10.85 per hour as of 2026) directly by the employer, before any tips are factored in. All tips earned belong entirely to the employee and cannot be used to offset the employer's minimum wage obligation.

Under Montana law, covered non-exempt employees must be paid overtime compensation at a rate of at least 1.5 times their regular rate of pay for all hours worked over 40 within a single workweek.

• Compliance note: Under state and federal law, an employee's "regular rate of pay" used for this calculation must include their base hourly wage as well as any non-discretionary bonuses, shift differentials, or commissions earned during that workweek. Additionally, Montana enforces specific state-level overtime exemptions, including a complete exemption for farm workers and a modified 48-hour overtime threshold for students employed at seasonal amusement or recreational areas who receive room and board.

Montana wage and hour laws do not require private-sector employers to provide meal periods or rest breaks to employees of any age (including minors). Because there are no state-level mandates, Montana employers must follow the federal payment rules under the Fair Labor Standards Act (FLSA):

• Rest breaks: The FLSA does not mandate rest breaks, but if an employer chooses to offer short breaks (usually lasting 20 minutes or less), this time must be counted as compensable working hours and paid.
  

• Meal periods: Bona fide meal periods (usually 30 minutes or more) do not need to be paid, provided the employee is completely relieved of all work duties during the entire period.

  • Compliance note: under federal law, an employer is not required to permit an employee to leave the premises for a meal period to be considered legally unpaid, so long as the employee is completely freed from active or inactive work duties.

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Vacation leave

Montana does not require private employers to provide paid or unpaid vacation time. Employers may choose to offer vacation leave at their discretion.

• Compliance note: if an employer does choose to offer paid vacation, Montana law strictly prohibits "use-it-or-lose-it" policies. Once vacation time is earned, it is legally considered a wage and cannot be forfeited or expired. Employers are legally required to pay out all accrued, unused vacation time upon an employee's termination or separation. Employers may, however, place a maximum cap on how much total vacation time an employee can accrue.

Paid sick leave

Montana has no state law requiring private employers to provide paid or unpaid sick leave; employers may establish their own sick leave policies.

• Compliance note: since there is no state mandate, covered private employers must ensure compliance with the federal Family and Medical Leave Act (FMLA), which provides up to 12 weeks of unpaid leave for qualifying medical reasons. Note: Montana public/state employees are entitled to state-mandated paid sick leave.

Holidays

Montana state law does not require private employers to provide paid holidays, unpaid holiday leave, or premium pay for working on a holiday. Any holiday time off or additional holiday compensation is offered strictly at the employer's discretion.

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The Montana Child Labor Standards Act and the federal Fair Labor Standards Act (FLSA) apply to all minors working in the state.

Permits & recordkeeping

• Montana is one of the few states that does not require minors to obtain a state work permit or school certificate to be employed. However, employers are legally required to keep accurate proof of age (such as a birth certificate or driver's license record) on file for all minor employees.

Equipment restrictions

• Minors 14–15 years old: Strictly prohibited from operating any power-driven equipment, including lawnmowers and power-driven string trimmers.

• Minors 16–17 years old: Permitted to use standard power mowers and basic string trimmers. However, they are strictly prohibited from using chainsaws or string trimmers equipped with brush and wood-cutting blades.

Laws for minors 14–15 years old:

• Can work up to 3 hours per school day and 18 hours per school week.

• Can work up to 8 hours per non-school day and 40 hours per non-school week.

• Cannot be employed before 7 AM or after 7 PM. (Exception: Between June 1st and Labor Day, evening hours are extended until 9 PM).

Laws for minors 16–17 years old:

• Hours: Montana and federal laws do not place any specific restrictions on the number of hours or times of day that 16- and 17-year-olds can work.

• Duties: While hours are unrestricted, these minors are still strictly prohibited from working in federally and state-defined "Hazardous Occupations," which include roofing, excavation, meat processing, and the operation of heavy manufacturing machinery.