Overview of Montana's Minimum Wage Requirements
As of January 1, 2024, the minimum wage in Montana is $10.30 per hour for all workers, except those who receive tips. This is an increase from the previous minimum wage of $9.95 per hour in 2023. For employers with gross annual sales less than $110,000 and not covered by the Fair Labor Standards Act (FLSA), the minimum wage is $4.00 per hour.
Montana's minimum wage is based on inflation as measured by the Consumer Price Index (CPI). It's important to note that no tip credit, training wage, or meal credit is allowed in Montana. This means that employers cannot use tips received by employees or the cost of meals provided to employees to offset the obligation to pay the minimum wage.
Understanding Local Minimum Wage Variations
The minimum wage in Montana is consistent across all counties, including Yellowstone, Missoula, Gallatin, Flathead, and Cascade. As of 2024, the minimum wage in these counties is $10.30 per hour. This wage is subject to a cost-of-living adjustment based on the Consumer Price Index each year.
However, businesses not covered by the Fair Labor Standards Act with gross annual sales of $110,000 or less may pay a lower wage of $4.00 per hour. If an employee is involved in producing or moving goods between states or is otherwise covered by the Fair Labor Standards Act, they must be paid the greater of either the federal minimum wage or Montana's minimum wage.
Minimum Wage Eligibility and Exemptions
In Montana, the eligibility for minimum wage is not explicitly stated, but there are certain exemptions and conditions that apply. Businesses not covered by the Fair Labor Standards Act (FLSA) and whose gross annual sales are $110,000 or less may pay their employees a minimum wage of $4.00 per hour.
However, if an individual employee is involved in producing or moving goods between states or is otherwise covered by the FLSA, they must be paid the greater of either the federal minimum wage or Montana’s minimum wage. There are also exemptions from the overtime pay provisions, and some employees are exempt from both the minimum wage and overtime pay provisions.
Minimum Wage Considerations and Compliance Tips
Food business employers in Montana need to be aware of several key minimum wage legal and compliance considerations. The state minimum wage is $10.30 per hour, subject to a cost-of-living adjustment based on the Consumer Price Index. Montana laws do not allow a tip credit, meal credit, or training wage.
Overtime pay is required for non-exempt employees who work over 40 hours in a workweek, at a rate of one and one-half times the regular rate. Employers must keep records of employees' full names, home addresses, time of day and day of week employee’s work-week begins, regular hourly rate of pay and length of pay period, hours worked each work day and total hours worked each workweek, date of payment and pay period covered by payment, and social security number.
FAQs
- What is the current minimum wage in Montana? As of January 1, 2024, the minimum wage in Montana is $10.30 per hour.
- Are there any exemptions to the minimum wage in Montana? Yes, businesses not covered by the FLSA and whose gross annual sales are $110,000 or less may pay their employees a minimum wage of $4.00 per hour.
- Is there a tip credit in Montana? No, Montana laws do not allow a tip credit, meal credit, or training wage.
Information Source Links
- Overview Minimum Wages in USA
- Minimum Wages around the World
- Minimum Wages News
- Minimum Wage and Labour Law
- Minimum Wage Regulations
- About the Minimum Wages Database
- 2024 Montana Minimum Wage Determination Letter
- 2024 Montana Wage & Hour Poster
- Montana Wage & Hour Payment Act
- State Minimum Wage
- U.S. Department of Labor website
- Montana SHRM
- NELP
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