Montana’s labor laws don’t change often, but they stand out for one reason: Montana is not classified as an at-will employment state. After a probationary period, employers in Montana can’t fire someone without “good cause.” That makes it the only state in the country where at-will employment does not apply by default.
This guide answers common questions about how employment practices work in Montana. It covers what employers need to know about wrongful termination, pay rules, workplace rights, and compliance in 2025. Each section is built to help employers avoid legal consequences and stay in step with state law.
What makes Montana different from other states when it comes to labor laws?
Montana is the only state that does not follow at-will employment once a worker finishes their probationary period. In most states, employers can fire workers for almost any reason, as long as it’s not illegal. But in Montana, employers need to show “good cause” after probation ends.
Good cause means a valid business reason for the termination. That could include poor performance, a policy violation, or a change in business needs. This rule comes from the Montana Wrongful Discharge from Employment Act (WDEA), which protects employees from being fired unfairly once they are no longer in the probation period.
How long is the probationary period in Montana?
Unless an employer sets a different policy, the probationary period in Montana lasts 12 months. During that time, the employer can fire the employee for any reason. After the probation ends, the employer must have good cause to justify termination. More detail is available from the Montana Department of Labor.
What counts as good cause for termination?
Montana law defines good cause as a reason that is reasonable and job-related. This includes poor performance, employee's failure to follow policies, or a need to reduce staff for business reasons. Employers should keep documentation of problems and give the employee a chance to improve if possible. If the decision is challenged, the employer may need to prove the cause was legitimate.
What are the rules for final paychecks in Montana?
- If an employee is fired or laid off, they must be paid all wages due by the end of the business day or within four hours of separation, whichever is sooner.
- If the employee quits, they must be paid by the next regularly scheduled payday or within 15 days, whichever occurs first.
- These timelines may differ if the employer has a written personnel policy that says otherwise.
Does Montana have strong anti-discrimination laws?
Yes. The Montana Human Rights Act bans discrimination based on race, color, national origin, sex, age, religion, marital status, disability, and other protected categories. It also bans harassment and retaliation. Employers can’t punish employees for filing complaints or helping with investigations.
Are there equal pay and whistleblower protections in Montana?
Yes. Montana law requires employers to pay equal wages to employees who do the same job, regardless of gender. The law also protects workers who report violations of the law, including fraud and safety issues. Employers can’t fire, demote, or harass workers who speak up in good faith.
What is the minimum wage in Montana in 2025?
The minimum wage in Montana is $10.55 per hour, effective January 1, 2025. This is higher than the federal minimum wage. Employers must post the current wage rate in the workplace and make sure all pay employees at or above this rate.
Montana does not permit a tip credit, meaning employers cannot count tips towards meeting the minimum wage requirement.
How does overtime work in Montana?
Employees who work more than 40 hours in a week must be paid time-and-a-half for those extra hours. Some small businesses may not be covered by federal overtime rules, but most employers still must follow state rules. Non-exempt workers are entitled to overtime unless specifically excluded by law.
Are there rules for hiring minors in Montana?
Yes. Children under 14 cannot be employed. Those aged 14 or 15 can work limited hours and may not do hazardous jobs. Teens aged 16 or 17 can work more hours but are still barred from dangerous tasks like operating heavy equipment or working in mining.
Do employers need to offer benefits in Montana?
Montana requires employers to provide workers’ compensation insurance to cover injuries or illnesses that happen on the job. Other benefits like health insurance, dental, vision, or retirement plans are optional and depend on company policy. If benefits are offered, they must be administered fairly and in line with state and federal law.
How does collective bargaining work in Montana?
If employees are represented by a certified union, the employer must bargain over wages, hours, and other working conditions. Some benefits are set by law, while others can be negotiated in the union contract. This mainly applies to public employers and large private employers with unionized workforces.
What are the payday and wage statement rules in Montana?
Employers must set regular paydays and tell employees when they will be paid. Each paycheck must include a statement showing the amount earned, taxes withheld, and any deductions. Wages can be paid in cash, by check, through direct deposit, or on a paycard if the employee agrees.
Employers must maintain records of employment and earnings.
What types of leave are protected by law in Montana?
Montana law provides time off for jury duty leave, military service, maternity leave, and for crime victims. These laws don’t cover sick leave or vacation, but if an employer offers them, they must follow their own policies. Federal leave rules like the Family and Medical Leave Act (FMLA) also apply.
While Montana recognizes multiple holidays, there is no legal requirement for private employers to offer employees paid or unpaid holiday leave.
Can Montana employers run background or credit checks?
Yes. Employers can run both background and credit checks, but they must follow federal and state rules.
For background checks, employers need written consent from the applicant and must follow the Fair Credit Reporting Act (FCRA). If they decide not to hire based on the report, they must give the applicant a copy and a summary of their rights before making a final decision.
Montana also limits how long negative information can be reported:
- Most records: 7 years
- Bankruptcies: 14 years
- Expunged records do not appear
Employers cannot charge applicants for background checks or related medical exams.
For credit checks, employers must provide a separate written disclosure and get written authorization. If they take adverse action based on a credit report, they must follow the same FCRA notice rules.
Montana does not have a statewide ban-the-box law, but employers still must comply with federal anti-discrimination protections.
What happens if more than one company employs the same person?
Montana recognizes joint employment. If two companies share control over a worker or benefit from the work, they can both be held responsible for wage and hour laws. Employers should clarify roles and employment contract agreements in these cases to avoid liability issues.
What should Montana employers know about unemployment insurance?
Most Montana employers must pay unemployment insurance (UI) taxes. If you paid $1,000 or more in wages during a year, or meet other conditions under state or federal law, you’re likely considered a “covered employer.”
UI taxes are paid by the employer and cannot be deducted from employee wages. For 2025, the taxable wage base is $45,100 per employee.
Covered employers must register with the Montana UI Division and report wages from January 1 of the year they qualify. They must also keep detailed records, including pay periods, wages, and separation dates.
Workers may qualify for UI benefits if they lose their job through no fault of their own and meet minimum wage and work history requirements.
More info: Montana UI Employer Handbook (PDF)
Summary Table: Key Features of Montana Employment Law (2025)
Feature | Montana Law |
At-will Employment | No (only during probation) |
Probationary Period | 12 months (default unless changed by employer) |
Minimum Wage | $10.55/hour (2025) |
Overtime | 1.5x pay after 40 hours/week |
Discrimination Protections | Race, sex, age, disability, and more |
Equal Pay | Required for same or similar work |
Whistleblower Protection | Broad (covers fraud, safety, legal issues) |
Final Pay Rules | Same day (if fired); next payday or 15 days (if quit) |
Child Labor | Restricted by age, hours, and job type |
Workers’ Compensation | Required |
Union Bargaining | Required if certified union is present |
Leave Laws | Covers maternity, jury duty, crime victim, and military |
Paydays and Wage Statements | Regular schedule and itemized statements required |
Background/Credit Checks | Allowed with consent; adverse actions must follow federal rules |
Need Help Navigating Montana Labor Laws?
Understanding Montana’s unique employment rules is only the first step. If you're unsure whether your policies comply with state and federal law, or if you want to streamline your hiring and termination processes, KRESS can help. We provide fast, accurate employment screening and compliance support tailored to your business needs.
Contact KRESS today to hire with confidence.