On September 30, 2021, Montana announced a $9.20 minimum wage rate for non-exempt employees. The new rate becomes effective on January 1, 2022. Employers should note that state law does not allow for a tip credit, meal credit or training wage.
Employers should review the state’s minimum wage exclusions to learn more about possible exceptions.
Businesses with annual gross sales of $110,000 or less may use a $4 per hour minimum wage rate if they are also exempt from federal minimum wage requirements.
Next Steps for Employers
Montana employers should prepare their payroll processes and procedures to ensure compliance with the new state minimum wage rate by the effective date. While not required by state law, employers are encouraged to post the Montana Wage and Hour poster in a prominent location where it may be easily seen by employees. Once made available, an updated poster may be downloaded from the Montana Department of Labor & Industry by clicking here.