The Montana Labor Law Guide

Minimum wage is the lowest hourly rate an employer is legally required to pay. The federal rate is a baseline, and states, cities, and regions can set their own higher rates.

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

Montana adjusts its minimum wage annually based on inflation. 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.

The standard minimum wage is set at the state level. No local municipalities have set their own rates above the state or federal baseline, so the $10.85 rate applies identically across all covered employers in the state.

Montana 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 at a rate of at least 1.5 times their regular rate for all hours worked over 40 in a single workweek.

The regular rate used for this calculation must include the base hourly wage plus any non-discretionary bonuses, shift differentials, or commissions earned during that workweek. Montana also 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 law does not require private-sector employers to provide meal periods or rest breaks to employees of any age, including minors. With no state-level mandate, employers 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 offers short breaks (usually 20 minutes or less), that time counts as compensable working hours and must be 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 for the entire period.

Under federal law, an employer is not required to let an employee leave the premises for a meal period to keep it legally unpaid, so long as the employee is completely freed from active or inactive work duties.

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.

If an employer does 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 must pay out all accrued, unused vacation time at 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 set their own sick leave policies.

With no state mandate, covered private employers must comply with the federal Family and Medical Leave Act (FMLA), which provides up to 12 weeks of unpaid leave for qualifying medical reasons. Montana public and state employees are entitled to state-mandated paid sick leave.

Holidays

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

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

Permits and 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. Employers must, however, 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 to 15 years old: strictly prohibited from operating any power-driven equipment, including lawnmowers and power-driven string trimmers.
• Minors 16 to 17 years old: permitted to use standard power mowers and basic string trimmers, but strictly prohibited from using chainsaws or string trimmers equipped with brush and wood-cutting blades.

Laws for minors 14 to 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. Between June 1st and Labor Day, evening hours are extended until 9 PM.

Laws for minors 16 to 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.