Montana Employment Screening Overview
Montana has no statewide ban-the-box or salary history ban laws, giving employers relatively broad discretion in hiring inquiries.
Key constraints include a seven-year limit on reporting criminal convictions for employment purposes, mandatory E-Verify or I-9 verification before work begins (effective July 2025), and drug testing restricted to specific job categories like hazardous work or safety-sensitive positions. Federal requirements and local rules may still apply.
What's Permitted
- No statewide ban-the-box law restricting criminal history inquiry timing
- Employers may conduct pre-employment drug testing for safety-sensitive positions
- E-Verify or Form I-9 verification required before work begins (effective July 2025)
- Seven-year limit on reporting criminal convictions for employment background checks
What's Prohibited
- Reporting criminal convictions older than seven years on background checks
- Charging applicants fees for background checks or medical examinations
- Requesting social media account information or passwords from applicants
- Failing to verify employment authorization before work begins (effective July 2025)
Ban the Box Laws
NoStatus Summary
Montana has no statewide Ban the Box for public or private employers. 2019 SB 168 failed (https://archive.legmt.gov/bills/2019/billhtml/SB01... Employers must follow FCRA/EEOC (https://www.ftc.gov/business-guidance/blog/2017/04... Discrimination enforcement: Montana Human Rights Bureau (https://erd.dli.mt.gov/human-rights/).
Key Requirements
Federal — Fair Credit Reporting Act (FCRA)
Federal consumer-reporting requirements for employer background checks:
- Written applicant authorization required.
- Provide pre-adverse and adverse notices.
- Use clear standalone disclosure forms.
- Allow time to dispute report.
Source: https://www.ftc.gov/business-guidance/blog/2017/04...
Federal — Title VII / EEOC guidance
Federal anti-discrimination rules on criminal history:
- Avoid policies causing disparate impact.
- Use individualized assessment processes.
- Consider job-relatedness and necessity.
- Allow applicant explanations and context.
Source: https://archive.legmt.gov/content/Committees/Inter...
Montana — No statewide Ban the Box law
State status and 2019 legislative proposal:
- No statewide Ban the Box law.
- SB 168 (2019) proposed; failed.
- Private and public employers unrestricted.
- Monitor future legislative developments.
Source: https://archive.legmt.gov/bills/2019/billhtml/SB01...
Montana — Criminal-history reporting limit (Mont. Code Ann. §31-3-112)
State limits on background-report content and age:
- Reporting limited to seven years.
- Covers arrests, indictments, convictions.
- Applies to all positions, any salary.
- More restrictive rule controls conflicts.
Source: https://archive.legmt.gov/content/Committees/Inter...
Montana — Occupational licensing (Mont. Code Ann. §37-1-203)
Licensing boards' treatment of convictions:
- Convictions not automatic licensing bars.
- Boards assess job-relatedness and rehabilitation.
- Probation/parole may allow provisional licenses.
- Must investigate before denying licensure.
Source: https://boards.bsd.dli.mt.gov/nursing/regulations/...
Montana Department of Corrections — Hiring policy
State-agency model for criminal-history consideration:
- Conviction not automatic employment disqualification.
- Consider offense gravity and time elapsed.
- Use individualized, job-related assessment.
- Require five-day self-reporting of convictions.
Source: https://cor.mt.gov/DataStatsContractsPoliciesProce...
Montana — Applicant protections and employer rules
Additional state protections and program-specific checks:
- Employers cannot charge background-check fees.
- Cannot request social-media passwords.
- Limited negligent-hiring liability for good-faith hires.
- Some programs require specific checks.
Sources: https://erd.dli.mt.gov/human-rights/filing-a-compl... https://dphhs.mt.gov/assets/BHDD/DDP/PoliciesandPr...
Ban the Box Best Practices for Montana Employers
- Get written FCRA authorization before background checks
- Provide adverse-action notice and opportunity to dispute inaccuracies
- Use individualized assessments considering offense gravity and rehabilitation
- Do not consider criminal records older than seven years
- Do not charge applicants for background checks or request passwords
Salary History Ban
NoMontana — State status (no statewide law)
No enacted statewide salary-history ban:
- No state-level prohibition currently
- Employers may request prior salary
- Local ordinances unverified; confirm locally
- Monitor legislature for future changes
Source: https://erd.dli.mt.gov/human-rights/human-rights-c... , http://leg.mt.gov/bills/2023/BillPdf/SB0146.pdf
Senate Bill 146 (Wage Opportunity and Transparency Act)
Proposed 2023 bill; not enacted:
- Prohibited salary-history inquiries for 15+ employees
- Allowed confirmation if voluntarily disclosed or post-offer
- Forbade retaliation for wage discussion nondisclosure
- Civil liability with two-year claim window
Senate Bill 313 (2025)
Proposed 2025 bill; tabled in committee:
- Similar to SB146 transparency proposals
- Tabled in committee March 2025
- Did not advance to enactment
- Employers should track bill status
Source: https://leg.mt.gov/
Federal — National Labor Relations Act and federal protections
Federal protections relevant to wage discussions:
- Protects employee wage discussions generally
- Federal law may exceed state gaps
- Federal contractors face additional rules
- Consult federal agencies for guidance
Source: https://www.congress.gov/bill/119th-congress/senat...
Salary History Best Practices for Montana Employers
- Do not rely solely on applicant salary history.
- Remove salary-history requests from job postings.
- Train interviewers to focus on skills and market rates.
- Verify and comply with any applicable local ordinances.
- Document compensation decisions; base offers on job-related factors.
Consumer Credit Checks
NoMontana permits employer credit checks; FCRA (15 U.S.C. §1681b) governs consent/adverse‑action; Montana Code Title 31, Ch.3 limits obsolete data and creates civil liability. See https://archive.legmt.gov/bills/mca/title_0310/cha... and https://dojmt.gov/dci-home/background-checks/
Key Requirements
Fair Credit Reporting Act (15 U.S.C. § 1681 et seq.)
Federal consumer-reporting requirements for employment:
- Written consumer consent required.
- Provide report, dispute rights, agency contact.
- Maintain accuracy and reasonable procedures.
- Private suits; $100–$1,000 statutory damages.
Sources: https://dli.mt.gov/resources/
Montana Code Annotated Title 31, Chapter 3 (Consumer Reporting)
State rules governing consumer-reporting agencies and use:
- Defines consumer report; covers employment.
- Bankruptcies limited to fourteen years.
- Suits/judgments, liens, collections seven years.
- Users must follow disclosure procedures.
Sources: https://archive.legmt.gov/bills/mca/title_0310/cha...
Definition: https://archive.legmt.gov/bills/mca/title_0310/cha...
Obsolete information limits: https://archive.legmt.gov/bills/mca/title_0310/cha...
Montana Human Rights Act
State anti-discrimination obligations affecting credit checks:
- Prohibits discrimination against protected classes.
- Avoid disparate impact from credit checks.
- Department enforces employment discrimination claims.
- Employer must show job-relatedness.
Source: https://dli.mt.gov/resources/
Credit Check Best Practices for Montana Employers
- Obtain written FCRA-compliant consent before requesting credit reports.
- Follow FCRA adverse-action notice procedures if taking action.
- Exclude obsolete credit data per Montana reporting time limits.
- Document job-related business necessity to avoid disparate impact.
- Use vendor contracts ensuring compliance with Montana and FCRA.
Marijuana Protection
Medicinal Marijuana
Montana employers are not required to accommodate medical marijuana use and may prohibit it in policies/contracts, including taking adverse action for a positive test. Consider potential ADA/disability-law issues where applicable.
Recreational Marijuana
Since 1/1/2022 (HB 701), Montana generally protects lawful off-duty marijuana use from discrimination, but employers may act for on-duty impairment, safety/job-performance impacts, bona fide occupational qualifications, or policy/CBA/professional-contract violations.
Drug Testing Regulations
Montana’s Workforce Drug and Alcohol Testing Act (MCA §§39‑2‑205–211) limits testing to safety‑sensitive, driving, security, fiduciary and hazardous roles; requires 60‑day written policy, 49 CFR Part 40–equivalent procedures, MRO review, split‑sample rights, confidentiality; off‑duty marijuana protected with safety exceptions.
Permitted Testing Types
Pre-Employment
Allowed for qualifying positions under MCA §§ 39-2-205–211.
Random Testing
Allowed if policy specifies procedures and selection is scientifically valid.
Reasonable Suspicion
Allowed if trained supervisors have objective, articulable basis for impairment.
Post Accident
Allowed when employee likely caused accident exceeding $1,500 property damage.
Workers' Compensation Discount
No statutory workers' compensation premium discount tied to employer drug‑testing has been identified in Montana law.
Employees who refuse or test positive under required drug testing may be denied workers' compensation benefits (MCA 39‑71‑407).
Best Practices
- Limit testing to statutorily covered positions only.
- Adopt written policy and provide 60-day notice.
- Follow 49 CFR Part 40 procedures or equivalent.
- Use MRO review, split-sample rights, maintain confidentiality.
- Do not penalize lawful off-duty marijuana use unless safety-related.
Clean Slate Laws
NoMontana lacks a comprehensive clean‑slate: non‑convictions are auto‑removed (MCA 44‑5‑202) https://dojmt.gov/dci-home/non-conviction-removal-... misdemeanors expunge by petition with 5‑year presumption (MCA 46‑18‑1107) https://dojmt.gov/dci-home/conviction-expungement-... seven‑year reporting limit https://dojmt.gov/dci-home/background-checks/
E-Verify Requirements
Mandatory for AllWho Must Use E-Verify
Private Employers [HB 226 — Legal Employment and Government Accountability Act]
Must verify every worker's authorization before they begin work using E‑Verify or a completed Form I‑9 per HB 226 (effective July 1, 2025).
Sources: https://news.dli.mt.gov/News/2025/07/legal-act , https://leg.mt.gov/bills/2023/HB0299/HB0226_1.pdf
Federal Contractors [HB 226; Federal E‑Verify requirements (USCIS/DHS)]
Subject to applicable federal E‑Verify/contract requirements and must also meet HB 226's state pre‑work verification (E‑Verify or Form I‑9).
Sources: https://leg.mt.gov/bills/2023/HB0299/HB0226_1.pdf , https://www.ecfr.gov/current/title-8/chapter-I/sub...
Any other relevant groups [HB 226; MCA §39‑71‑117]
Applies broadly — includes public entities, temporary service contractors, independent contractors who employ persons, and other employers defined at MCA §39‑71‑117.
Sources: https://leg.mt.gov/bills/2023/HB0299/HB0226_1.pdf , https://archive.legmt.gov/bills/mca/title_0390/cha...
Background Check Regulations
Federal laws (FCRA/EEOC) apply to employment background checks, and Montana enforces additional state statutes and industry-specific limits (e.g., licensing, fingerprint checks); there is no statewide ban‑the‑box, so employers must comply with both federal rules and Montana statutes.
FCRA Compliance Process
Disclosure & Authorization
Provide clear, standalone written disclosure that a background check will be conducted. Obtain separate written authorization from the applicant before ordering the report.
Obtain Background Report
Order the background check from a Consumer Reporting Agency (CRA). Ensure the CRA is FCRA-compliant and provides accurate, up-to-date information.
Pre-Adverse Action Notice
If considering denying employment based on the report, provide the applicant with:
- Copy of the background report
- Copy of "A Summary of Your Rights Under the FCRA"
- Reasonable time to respond (typically 5 business days)
Adverse Action Notice
If final decision is made to deny employment, provide written notice including:
- Name, address, and phone number of the CRA
- Statement that the CRA did not make the decision
- Notice of right to dispute report accuracy
- Notice of right to request additional free copy within 60 days