Montana Employment Laws

Montana is the only state that rejects at-will employment by statute. After an employee completes a probationary period (presumed to be 6 months unless specified otherwise), the employer must have "good cause" to terminate. A discharge is wrongful if it was retaliatory, lacked good cause, or violated the employer's written personnel policy.

Prohibits employment discrimination based on race, color, national origin, religion, sex, age, physical and mental disability, marital status, and (for public employers) political beliefs. Employers also cannot discriminate based on vaccination status or lawful off-duty tobacco or marijuana use.

Montana's minimum wage is $10.55/hour (2025) and $10.85/hour (effective January 1, 2026), adjusted annually based on the Consumer Price Index. No tip credit, meal credit, or training wage is permitted. Businesses not covered by the FLSA with gross annual sales of $110,000 or less may pay $4.00/hour.

Montana disfavors restraints on trade but does allow reasonable noncompete agreements. Covenants must be limited in time or place, based on good consideration, and afford reasonable protection without imposing an unreasonable burden. Courts will not enforce noncompetes against employees terminated without cause.

Montana is not a right-to-work state. Unions and employers may negotiate contracts requiring union membership or fair share fee payments as a condition of employment.