Montana HR Compliance
for Small Businesses

The minimum wage in Montana is $10.85/hour (Jan 1, 2026, CPI-indexed). No tip credit. No meal credit. No training wage. Small businesses (under $110,000 gross annual, not FLSA-covered): $4.00/hour.. Montana does not allow a tip credit — tipped workers must receive the full minimum wage. Always verify the current rate at the start of each calendar year — many state rates are indexed to CPI and adjust annually.

In Montana: involuntary terminations — Next regular payday or next business day. Voluntary resignations — . Accrued PTO is not required to be paid out on termination unless your written policy promises it. Never hold a final paycheck over unreturned equipment or unsigned paperwork — that exposes you to wage claims regardless of the circumstances.

Montana does not have a statewide paid sick leave law as of 2026. Federal FMLA provides up to 12 weeks of unpaid, job-protected leave for qualifying employees at employers with 50 or more workers. Offering paid sick leave voluntarily improves retention and reduces unplanned absenteeism.

Montana does not have a state-mandated paid family leave program. Federal FMLA provides up to 12 weeks of unpaid, job-protected leave for employers with 50 or more employees. Employers can offer private paid leave or short-term disability insurance.

Montana does not currently have a statewide law requiring salary ranges in job postings. Pay equity best practice is to establish documented pay bands and apply them consistently, regardless of what the law requires.

Healthcare: HB 620 (eff. Jan 1, 2026): FULL BAN for licensed physicians. HB 198 (eff. mid-April 2025): extends ban to naturopathic physicians, registered nurses, APRNs, physician assistants. Exceptions for loan repayment, relocation costs, signing bonuses, practice sale. Non-healthcare: MCA 28-2-703 to 28-2-705 limits restraints of trade. Audit and void any existing noncompetes with affected employees before enforcement action or litigation.

Montana uses the following test to determine worker classification: Federal framework. Misclassification exposes employers to back taxes, penalties, and liability for benefits and wage-hour violations. When in doubt, consult counsel before engaging contractors for ongoing work.

Meal breaks: None required for adults 18+. Rest breaks: None required. Missing a required break can trigger a premium pay penalty — make sure managers understand that breaks are mandatory, not optional, and document compliance in timekeeping records.