Montana’s current minimum wage is $8.75, for employers who have more than $110,000 in annual gross sales. MT Dept. of Labor & Industry: Minimum Wage
For employers who have gross annual sales of $110,000 or less, the minimum wage rate is $4.00. MT Statute 39-3-409(3)
Montana law requires an annual review of its minimum wage and the minimum wage must be increased by the percentage the cost of living has changed from the prior August to the August in the year the review is conducted. The cost of living change is based on the consumer price index. Any change to the minimum wage takes effect on January 1 of the following year. MT Statute 39-3-409(2)
Montana employers must also comply with federal minimum wage laws, which currently sets the federal minimum wage at $7.25. See FLSA: Minimum Wage.
If an employer chooses to pay employees minimum wage, the employer must pay those employees in accordance with the minimum wage law, either federal or state, that results in the employees being paid the higher wage. In most instances in Montana, the Montana minimum wage will apply as it generally guarantees a higher wage rate for employees than federal law.
Tip minimum wage
Montana does not have a minimum wage for tipped employees that is lower than the standard minimum wage. Instead, those employees must be paid the standard minimum wage. MT Admin. Rule 24.16.1508.
Tips are the property of the employee(s) who receive them and may not be used by the employer as part of the employee’s wages. Montana defines a tip as a sum of money given by a customer to an employee in recognition of services performed. The amount of money paid as a tip is determined solely by the customer. Tips are distinguished from service charges which are fixed amounts added to a customer’s bill in lieu of a tip. MT Statute 39-3-402; MT Admin. Rule 24.16.1508 Service charges must be distributed to nonmanagement employees who participated in preparing and serving the food or beverage pursuant to a tip pool agreement. Employers may reduce the tips or service charges received by employees from customers by the fee the employers paid to process customers credit cards payments for the tips or service charges. MT Statute 39-3-402
Tip pooling and sharing
Montana minimum wage laws do not address whether an employer may require employees to participate in a tip pooling or tip sharing arrangement.
Employees with disabilities
Montana law allows employers to pay employees with disabilities a subminimum wage if they are engaged in work that is incidental to training or evaluation programs or their earning capacity is so severely impaired that they are unable to engage in competitive employment. MT Statute 39-3-406(1)(f).
Montana minimum wage laws do not allow an employer to pay trainees a subminimum wage rate that is less than the standard minimum wage.
Montana minimum wage laws allow the Department of Labor and Industry to exempt apprentices from its minimum wage and overtime requirements for no more than the first the 30 days of the apprentices’ employment. MT Statute 39-3-406(1)(g).
Montana minimum wage laws allow the Department of Labor and Industry to exempt learners from its minimum wage and overtime requirements for no more than the first the 30 days of the learners’ employment. MT Statute 39-3-406(1)(g).
Montana minimum wage laws allow employers to pay learners who are under the age of 18 and who work as farm workers a subminimum wage that is not less than 50 percent of the standard minimum wage for the first 180 days of employment. MT Statute 39-3-406(h)
Montana minimum wage laws do not allow employers to pay student learners a subminimum wage rate that is less than the standard minimum wage.
Montana minimum wage laws do not allow employers to pay student workers a subminimum wage rate that is less than the standard minimum wage.