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HOURLY WAGE INDEX

Let’s talk wages in Montana

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$10.30

What is the minimum wage in Montana?

The minimum wage in Montana is $10.30 per hour for all employees, effective January 1, 2023. This is the result of a voter-approved initiative in 2006 that gradually increased the minimum wage from $8.00 to $9.95 over a seven-year period.

There are a few exemptions to the minimum wage law in Montana. Tipped workers are paid a lower minimum wage of $3.84 per hour, but they must also receive tips that bring their hourly earnings up to the minimum wage. Employees under the age of 18 are also paid a lower minimum wage of $8.75 per hour, but only if they are working in their first 90 days of employment.

The minimum wage is an important issue for many people in Montana. It is a matter of fairness, economic security, and quality of life. The debate over the minimum wage is likely to continue for many years to come, but it is an issue that deserves our attention.

Here are some additional facts about the minimum wage in Montana:

  • The minimum wage was first established in Montana in 1968.
  • The minimum wage has been increased 15 times since it was first established.
  • The minimum wage is indexed to inflation, so it automatically increases each year with the cost of living.
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$26.88

What is the average wage in Montana?

The average wage in Montana is $26.88 per hour. The median wage is the wage at which half of workers earn less and half earn more. Median wage is $20.69 for Montana.

Wages are generally higher in Montana than in other states. The cost of living in Montana is also higher than in many other states.

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$29.68

What is the living wage in Montana?

Wages aren’t everything!

While pay is one of the main factors that hourly employees consider when choosing to join (or stay at) a company, it’s not the end all be all. Research shows that advancement opportunities, supportive management, and schedule flexibility are all incredibly important as well.

Want to learn more about this trend? We dive deep into the data behind which perks and benefits matter most to hourly workers. Check out our full conversation with expert Sara Wasserteil of Cara Collective.

A guide to hourly labor laws in Montana

Verified by Legal Counsel Brooke Davis

  • Standard Minimum Wage: $10.30 (MT.gov) (Mont. Code § 39-3-409).
  • Tipped Minimum Wage: Businesses grossing at least $110,000 in sales: $10.30, no tip credit. Businesses grossing under $110,000: $4 per hour, totaling at least federal minimum wage ($7.25) with tips (MT.gov) (Mont. Code § 39-3-409) (DoL Table) (29 US Code § 203).
  • Overtime: Hours exceeding 40 in a fixed week are overtime, paid at 1.5 times the regular rate (29 US Code § 207) (DoL).
  • Meal Breaks: No state or federal law requiring meal breaks. Federal law allows unpaid, non-working, bona-fide meal breaks over 30 minutes; exceptions may apply (29 C.F.R. § 785.19) (DoL).
  • Rest Breaks: No state or federal law requires rest breaks. Breaks lasting 5–20 minutes must be paid (29 C.F.R. § 785.18). 
  • Wage Deductions: Those required by law, such as taxes, and those authorized by the employee in writing. Reasonable deductions for board, room, and incidentals are allowed. Third-party deductions benefitting the employer may not reduce wages below the applicable minimum (Mont. Code § 39-3-204) (29 C.F.R. § 4.168) (29 US Code § 203).
  • Final Paychecks:
    • Resignation: The first of 15 days from separation or the next regular payday.
    • Termination: Due immediately unless the employer has a written policy that extends payment time to the first of 15 days from separation or the next regular payday (Mont. Code § 39-3-205).
  • Wage Payment Frequency: Semi-monthly (Mont. Code § 39-3-204).
  • Paid Sick Leave: No state/federal law. Policies are determined by the employer or through collective bargaining agreements (DoL).
  • Paid Family and Medical Leave: No paid leave is mandated by law. Up to 12 unpaid weeks in one year for eligible employees (FMLA).
  • Maximum Daily and Weekly Hours for Children Under 16: Minors under 14 cannot work, with limited exceptions. No working during required school hours, with limited exceptions. Limited to working hours between 7 a.m. and 7 p.m., extending to 9 p.m. between June 1 and Labor Day. No more than three hours per school day and 18 hours per school week. No more than eight hours per nonschool day or 40 hours per nonschool week. (MT DoL) (Mont. Code § 39-3-204) (29 C.F.R. § 570.35).
  • Maximum Daily and Weekly Hours for Children 16 and 17: No state/federal law restricting work hours beyond required school hours for non-hazardous occupations (Mont. Code § 41-2-107) (DoL) (29 C.F.R. § 570.35).

Frequently asked questions

What is the difference between gross wages and net wages?

It's important to remember that the Hourly Wage Index data above reflects gross wages, or the amount of money an employee earns before accounting for payroll deductions like taxes, benefits, or wage garnishments. Due to variability in tax rates across locations, slightly lower gross wages in a certain location might result in higher take home pay, or vice versa.

What is a good hourly wage?

This question is a difficult one to answer, as a "good hourly wage" is highly subjective according to experience, work responsibilities, cost of living, and other factors. We recommend using Hourly Wage Index data as a starting point. Once you have established a baseline for certain positions, do further research into similar businesses in your area.

Lastly, consider surveying your employees. They're the best resource to help you know what is a good hourly wage, what competitive pay looks like in your location, and how competitive wages change in your industry over time.

Offering competitive pay is one of my top priorities—what other resources do you have that might help?

We know that getting applicants to pay attention to your business can be extremely challenging, and that offering competitive pay is a huge part of that. Wages aren’t everything, however! Applicant experience is another important factor that can help set you apart from your competition. A few examples include:

  • Short, easy to understand job descriptions
  • Mobile-friendliness
  • Quick communication
  • Streamlined interview stages
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