Montana Minimum Wage Calculator

Montana Minimum Wage & Labor Law Guide (MCA § 39-3-404)

The state of Montana sets its minimum wage rate under Montana Code Annotated (MCA) § 39-3-404. Montana law indexes the minimum wage annually to the Consumer Price Index (CPI-U), establishing the current statutory rate at $10.85 per hour.

Montana's Strict "No Tip Credit" Protection for Workers

Montana is one of only seven states nationwide (alongside California, Washington, Oregon, Nevada, Alaska, and Minnesota) that completely prohibits tip credits:

• Under MCA § 39-3-402, employers must pay tipped employees the full state minimum wage of $10.85 per hour directly from employer funds.
• Employers cannot claim a tip credit or pay the sub-minimum federal cash wage of $2.13/hr.
• All gratuities received by servers, bartenders, delivery drivers, and service staff belong exclusively to the employee, except for valid employee-only tip-pooling arrangements.

Overtime Requirements in Big Sky Country

Montana follows standard Fair Labor Standards Act (FLSA) overtime principles under MCA § 39-3-405:

• Non-exempt employees must receive 1.5 times their regular hourly rate for all hours worked in excess of 40 hours during a standard 7-day workweek.
• At the baseline $10.85/hr minimum wage, Montana overtime pay is at least $16.275 per hour.
• Unlike California or Nevada, Montana does not have a daily overtime threshold (e.g., after 8 hours in a day); overtime is calculated strictly on a weekly basis exceeding 40 hours.

Small Business Exemption Under Montana Law

Under MCA § 39-3-404(1), businesses not covered by the federal Fair Labor Standards Act whose gross annual sales are $110,000 or less may pay a reduced state minimum wage of $4.00 per hour. However, virtually all enterprises engaging in interstate commerce (including accepting credit cards or processing out-of-state goods) are governed by the federal or higher state rate of $10.85/hr.

Frequently Asked Questions

When does Montana's minimum wage adjust each year?

Montana's Department of Labor & Industry recalculates the cost-of-living adjustment every September 30, with new wage rates taking effect on January 1 of each calendar year.

Can Montana employers pay a training or youth wage?

Yes, under federal FLSA provisions, employers may pay a youth minimum wage of $4.25/hr to employees under 20 years of age during their first 90 consecutive calendar days of employment.

Are agricultural or seasonal workers covered under Montana minimum wage?

Certain agricultural workers, immediate family members, and seasonal camp counselors are specifically exempt from state overtime and minimum wage provisions under MCA § 39-3-406.