Montana
Montana Minimum Wage 2026: $10.85 an Hour and $4.00 Tier
Independently fact-checked against primary sources (last audited September 30, 2026). · 9 primary sources cited on this page. How we verify our legal content
Montana's minimum wage is $10.85 an hour, effective January 1, 2026, under section 39-3-409 of the Montana Code Annotated (MCA). That is $3.60 above the federal minimum wage of $7.25, so most Montana workers are owed the state rate. A lower state rate of $4.00 an hour applies, according to the Montana Department of Labor & Industry (DLI), only to businesses that are not covered by the federal Fair Labor Standards Act (FLSA) and have gross annual sales of $110,000 or less (MCA 39-3-409(3)).
Montana adjusts its rate every year for inflation, and DLI is required to make the adjustment no later than September 30. When this page was last verified, DLI's minimum wage page still showed $10.85 and no 2027 rate had been posted, so no 2027 figure appears here.
Information last verified on September 30, 2026. This article has not been reviewed by a licensed lawyer.
Jurisdiction scope: This article covers Montana's minimum wage under MCA 39-3-409, as administered by the Montana Department of Labor & Industry, and the federal FLSA overlay. It does not cover overtime, other states, or local ordinances, which were not researched for this page.
What is Montana's minimum wage in 2026?
The rate is $10.85 an hour. DLI's notice states that, pursuant to MCA 39-3-409, Montana's minimum wage increases to $10.85 per hour effective January 1, 2026, and its state minimum wage page shows "Current Minimum Wage: $10.85."
| Employer | Hourly rate | Effective |
|---|---|---|
| Most employers | $10.85 | January 1, 2026 |
| Business not covered by the FLSA with gross annual sales of $110,000 or less | $4.00 | Current |
The $4.00 small-business rate
The $4.00 rate is narrow. DLI states it applies to a business that is not covered by the FLSA and has gross annual sales of $110,000 or less. The DLI page also says that if an individual employee is producing or moving goods between states, or is otherwise covered by the FLSA, that employee must be paid the greater of the federal minimum wage or Montana's minimum wage. In 2026, that greater figure is Montana's $10.85.
In practice, a small business that sells goods across state lines, or that has employees engaged in interstate commerce, cannot rely on the $4.00 rate for those employees. Whether a particular business is FLSA-covered is a federal question that turns on facts about its operations; see the federal minimum wage guide for how coverage works.
What will Montana's minimum wage be in 2027?
Montana has not announced it. DLI's minimum wage page says the adjustment is made "no later than September 30th of each year," and when this page was last verified that page still showed $10.85. A 2027 notice had not been posted.
The mechanism, as DLI describes it, is an annual adjustment for the increase, if any, in the Consumer Price Index (CPI-U, U.S. city average, all items) from August of the preceding year to August of the current year. The result is rounded to the nearest five cents and takes effect the following January 1. If there is no CPI increase, there is no adjustment.
DLI's 2026 determination letter shows how it works. It applied a 2.92 percent increase to the prior $10.55 rate, arriving at $10.86, and rounded to $10.85. The letter was dated September 23, 2025. The 2027 rate will depend on the CPI change DLI measures this year, so no 2027 figure is stated here.
Tipped workers
Montana does not allow a tip credit. DLI states: "No tip credit, meal credit, or training wage is allowed under Montana's Wage & Hour Laws." A tipped server, bartender or delivery worker must receive the full $10.85 an hour from the employer, and tips are on top of that wage.
That is a much higher cash wage than federal law requires. The federal minimum for tipped employees is a $2.13 cash wage if tips bring the total to $7.25, but Montana's rule means the federal tip credit does not reduce a Montana employer's wage obligation.
Training wage, youth rates and exemptions
DLI states that no training wage is allowed. Montana has no general youth rate, but MCA 39-3-406 excludes farm-worker learners under 18 for up to 180 days (at no less than 50 percent of the minimum wage) and lets the commissioner exempt apprentices or learners for up to 30 days. This page does not list all of Montana's statutory exemptions from the minimum wage requirement. DLI publishes a separate page on minimum wage and overtime exemptions; check it for a specific job before assuming a lower rate.
How the federal minimum wage fits in
The federal minimum wage is $7.25 an hour under 29 U.S.C. 206(a)(1)(C). Where state law requires a higher minimum wage, that higher standard applies, according to the U.S. Department of Labor. Section 218(a) of Title 29 says the FLSA does not excuse noncompliance with a state law establishing a higher minimum wage. In Montana that means the state's $10.85 rate governs for FLSA-covered workers, who receive the greater of the two rates.
Local minimum wages
This page makes no statement about whether Montana law allows or blocks local governments from setting their own minimum wage, because no Montana preemption statute was opened and no local minimum wage was found in the sources reviewed.
Filing a wage claim in Montana
DLI's Employment Standards Division takes wage claims and has an instructions page called "Filing a Wage Claim." MCA 39-3-407 treats a minimum wage claim as a wage claim under the state's wage payment law. Under MCA 39-3-207, a complaint to recover wages and penalties is filed within 180 days of the default or delay in payment, and wages can be recovered for up to 2 years (3 years for repeated violations). MCA 39-3-206 allows a penalty of up to 110 percent of the unpaid wages. DLI also says a worker can file in District Court instead. This page does not state retaliation protections, because they were not confirmed. Because the 180-day window is short, contact DLI promptly if you believe you were underpaid. For the wider picture of recovering wages you are owed, see unpaid wages.
Related pages
- Minimum wage by state
- Federal minimum wage rules
- Montana final paycheck laws
- Montana at-will employment laws
- Recovering unpaid wages
- Overtime calculator
- Neighboring states: Idaho minimum wage, Wyoming minimum wage
Disclaimer: This article provides general legal information, not legal advice. It reflects Montana's minimum wage law (MCA 39-3-409) as described by the Montana Department of Labor & Industry, and the federal Fair Labor Standards Act, as verified on September 30, 2026. Wage rules change, and your situation may turn on facts not covered here. For advice about a specific situation, consult a lawyer licensed in Montana or contact the Montana Department of Labor & Industry.
Last updated: September 30, 2026.
Frequently Asked Questions
What is the minimum wage in Montana in 2026?
It is $10.85 an hour, effective January 1, 2026, under MCA 39-3-409, according to the Montana Department of Labor & Industry.
What will Montana's minimum wage be in 2027?
It has not been announced. DLI's page says the adjustment is made no later than September 30 each year, and it still showed $10.85 when this page was last verified.
How does Montana adjust its minimum wage each year?
DLI adjusts it for the increase, if any, in the CPI-U from August of the preceding year to August of the current year, rounded to the nearest five cents, effective the following January 1. No CPI increase means no adjustment.
Does Montana have a $4.00 minimum wage?
Yes, for a business not covered by the FLSA with gross annual sales of $110,000 or less. An employee covered by the FLSA must be paid the greater of the federal rate or Montana's rate.
Does Montana allow a tip credit?
No. DLI states that no tip credit, meal credit or training wage is allowed under Montana's wage and hour laws.
Is there a training or youth wage in Montana?
DLI says a training wage is not allowed. There is no general youth rate, but MCA 39-3-406 has narrow exclusions, including farm-worker learners under 18 for up to 180 days at no less than 50 percent of the minimum wage.
Is Montana's minimum wage higher than the federal minimum wage?
Yes. The federal rate is $7.25 an hour, and under 29 U.S.C. 218(a) a higher state minimum wage still applies.
Where do I file a wage claim in Montana?
Through the Department of Labor & Industry's Employment Standards Division, which publishes instructions on its Filing a Wage Claim page. Under MCA 39-3-207, a complaint to recover wages and penalties is filed within 180 days of the default or delay in payment. DLI says a worker can also file in District Court.
Updates
Independently fact-checked against the cited primary sources
The Law Behind This Article
This article rests on the statutory provisions below, held in our own legal record and retrieved from the official source. Tap a section to read the operative text.
Montana Code Annotated, Title 39
§ 39-3-409Adoption Of Minimum Wage Rates -- ExceptionIn force
39-3-409. Adoption of minimum wage rates -- exception. (1) The minimum wage, except as provided in subsection (3), must be the greater of either: (a) the minimum hourly wage rate as provided under the federal Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)), excluding the value of tips received by the employee and the special provisions for a training wage; or (b) $6.15 an hour, excluding the value of tips received by the employee and the special provisions for a training wage. (2) (a) The minimum wage is subject to a cost-of-living adjustment, as provided in subsection (2)(b). (b) No later than September 30 of each year, an adjustment of the wage amount specified in subsection (1) must be made based upon the increase, if any, from August of the preceding year to August of the year in which the calculation is made in the consumer price index, U.S. city average, all urban consumers, for all items, as published by the bureau of labor statistics of the United States department of labor.
Official text (excerpt) · last checked 2026-07-29 · Read the full text in our law library · Verify at mca.legmt.gov
§ 39-3-404Minimum WageIn force
39-3-404. Minimum wage. (1) Except as otherwise provided in this part and except for farm workers as provided in subsection (2), an employer shall pay to each employee a wage of not less than the applicable minimum wage as determined by the commissioner in accordance with 39-3-409. (2) In the case of a farm worker employed for a part of a calendar year that includes periods requiring working hours in excess of 8 hours a day and other seasonal periods requiring working hours substantially less than 8 hours a day, the employer may pay the worker at a fixed rate of compensation during the term of employment. The employer may elect to: (a) keep a record of the total number of hours worked by the worker during the part of the year during which the worker was employed bythe employer, but the total wages paid by the employer to the employee for that part of the year during which the employee was employed by the employer may not be less than the applicable minimum wage rate multiplied by the total number of hours worked; or (b) in lieu of the minimum wage set forth in this part, pay the farm worker a wage as defined in this section on a monthly basis.
Official text (excerpt) · last checked 2026-07-29 · Read the full text in our law library · Verify at mca.legmt.gov
§ 39-3-206Penalty For Failure To Pay Wages At Times Specified In LawIn forcecited in 2 of our articles
39-3-206. Penalty for failure to pay wages at times specified in law. (1) An employer who fails to pay an employee as provided in this part or who violates any other provision of this part is guilty of a misdemeanor. A penalty must also be assessed against and paid by the employer to the employee in an amount not to exceed 110% of the wages due and unpaid. (2) Nothing in this section may be construed to relieve an employer from the requirement to pay an employee the full amount of wages due if the employer is found in violation of this part.
Official text (excerpt) · last checked 2026-07-29 · Read the full text in our law library · Verify at mca.legmt.gov
Cited in 46 court opinions in our collectionLatest citing opinion in our collection: 2020
Opinions citing this section in our collection:
- Kuhr v. City of Billings (Montana Supreme Court 2007, 338 Mont. 402)“…an amount not to exceed 110% of the wages due and unpaid.” Section 39-3-206, MCA. The maximum penalty of 110 percent of…”
- Langager v. Crazy Creek Products, Inc. (Montana Supreme Court 1998, 287 Mont. 445)“…pay, in an amount of $520, along with penalties pursuant to § 39-3-206, MCA. ¶10 Crazy Creek subsequently requeste…”
- Oster v. Valley County (Montana Supreme Court 2006, 333 Mont. 76)“…elief in the District Court for violation by the County of § 39-3-206, MCA, which mandates a penalty against…”
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
Also relied on in: Montana Final Paycheck Laws: Immediate Payment on Discharge
§ 39-3-207Period Within Which Employee May Recover Wages And PenaltiesIn forcecited in 2 of our articles
39-3-207. Period within which employee may recover wages and penalties. (1) An employee may recover all wages and penalties provided for the violation of 39-3-206 by filing a complaint within 180 days of default or delay in the payment of wages. (2) Except as provided in subsection (3), an employee may recover wages and penalties for a period of 2 years prior to the date on which the claim is filed if the employee is still employed by the employer or for a period of 2 years prior to the date of the employee's last date of employment. (3) If an employer has engaged in repeated violations, an employee may recover wages and penalties for a period of 3 years from the date on which a claim is filed if the employee is still employed by the employer or for a period of 3 years prior to the date of the employee's last date of employment.
Official text (excerpt) · last checked 2026-07-29 · Read the full text in our law library · Verify at mca.legmt.gov
Cited in 10 court opinions in our collectionLatest citing opinion in our collection: 2013
Opinions citing this section in our collection:
- Delaware v. K-Decorators, Inc. (Montana Supreme Court 1999, 293 Mont. 97)“…(1) wages due and unpaid. Section 39-3-207, MCA, in turn, provides: Any employee may r…”
- Craver v. WASTE MANAGEMENT PTRS. OF BOZEMAN (Montana Supreme Court 1994, 265 Mont. 37)“…in assessing penalties against TRD? TRD argues that § 39-3-207, MCA, limits the amount of statutory penalti…”
- Harrell v. Farmers Educational Cooperative Union (Montana Supreme Court 2013, 373 Mont. 92)“…lt or delay in the payment in wages. “[A] wage claim under § 39-3-207, MCA, accrues when the employer’s duty to pa…”
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
§ 39-3-406ExclusionsIn force
39-3-406. Exclusions. (1) The provisions of 39-3-404 and 39-3-405 do not apply with respect to: (a) students participating in a distributive education program established under the auspices of an accredited educational agency, including a work-based learning program operated in compliance with 20-7-1510 and 20-7-307(2); (b) persons employed in private homes whose duties consist of menial chores, such as babysitting, mowing lawns, and cleaning sidewalks; (c) persons employed directly by the head of a household to care for children dependent upon the head of the household; (d) immediate members of the family of an employer or persons dependent upon an employer for half or more of their support in the customary sense of being a dependent; (e) persons who are not regular employees of a nonprofit organization and who voluntarily offer their services to a nonprofit organization on a fully or partially reimbursed basis; (f) persons with disabilities engaged in work that is incidental to training or evaluation programs or whose earning capacity is so severely impaired that they are unable to engage in competitive employment; (g) apprentices or learners, who may be exempted by the…
Official text (excerpt) · last checked 2026-07-29 · Read the full text in our law library · Verify at mca.legmt.gov
Cited in 8 court opinions in our collectionLatest citing opinion in our collection: 2009
Opinions citing this section in our collection:
- Kuhr v. City of Billings (Montana Supreme Court 2007, 338 Mont. 402)“…had no application in this case in light of §§ 39-4-107 and 39-3-406, MCA, which provide that the eight-hour day…”
- Berry v. KRTV Communications, Inc. (Montana Supreme Court 1993, 262 Mont. 415)“…to be entitled to overtime pay. As noted by the majority, § 39-3-406, MCA, contains numerous exclusions to Montan…”
- Lewis v. B & B Pawnbrokers, Inc. (Montana Supreme Court 1998, 292 Mont. 82)“…ons inapplicable in this case, see §§ 39-3-405(2), (3) and 39-3-406, MCA, employers in Montana are required to c…”
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
§ 39-3-407EnforcementIn force
39-3-407. Enforcement. Enforcement of this part shall be treated as a wage claim action and shall be pursued in accordance with part 2 of this chapter, as amended. This part may also be enforced in accordance with part 5 of this chapter for the benefit of certain employees in the mineral and oil industry. The commissioner may enforce this part without the necessity of a wage assignment.
Official text (excerpt) · last checked 2026-07-29 · Read the full text in our law library · Verify at mca.legmt.gov
Cited in 7 court opinions in our collectionLatest citing opinion in our collection: 2003
Opinions citing this section in our collection:
- Arrowhead Sch. Dist. 75, Park Co. v. Klyap (Montana Supreme Court 2003, 318 Mont. 103)“…Servs. (1990), 242 Mont. 88, 94, 788 P.2d 913, 917 (citing § 39-3-407, MCA, and § 39-3-206, MCA), we have never a…”
- Wage Claims of Stewart v. Region II Child & Family Services (Montana Supreme Court 1990, 242 Mont. 88)“…er unpaid wages plus up to 100% in liqui *95 dated damages, § 39-3-407, MCA; § 39-3-206, MCA. In Plouffe v. Farm &…”
- Boegli v. Glacier Mountain Cheese Co. (Montana Supreme Court 1989, 238 Mont. 426)“…Contrastingly, S 39-3-408, MCA, is subject to § 39-3-407, MCA, which requires enforcement of Part 4…”
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
United States Code Title 29
§ 206Minimum wageIn forcecited in 49 of our articles
Every employer shall pay to each of his employees who in any workweek is engaged in commerce or in the production of goods for commerce, or is employed in an enterprise engaged in commerce or in the production of goods for commerce, wages at the following rates: except as otherwise provided in this section, not less than— $5.85 an hour, beginning on the 60th day after May 25, 2007; $6.55 an hour, beginning 12 months after that 60th day; and $7.25 an hour, beginning 24 months after that 60th day; if such employee is a home worker in Puerto Rico or the Virgin Islands, not less than the minimum piece rate prescribed by regulation or order; or, if no such minimum piece rate is in effect, any piece rate adopted by such employer which shall yield, to the proportion or class of employees prescribed by regulation or order, not less than the applicable minimum hourly wage rate. Such minimum piece rates or employer piece rates shall be commensurate with, and shall be paid in lieu of, the minimum hourly wage rate applicable under the provisions of this section.
Official text (excerpt) · last checked 2026-07-28 · Read the full text in our law library · Verify at uscode.house.gov
Cited in 6,250 court opinions in our collectionLatest citing opinion in our collection: 2026
Opinions citing this section in our collection:
- Mark D. Tourscher v. Martin Horn, Secretary of the Pa. Dept. Of Corrections John McCullough Superintendent ,(d.c. Civil No. 98-Cv-00176j) (Court of Appeals for the Third Circuit 1999, 184 F.3d 236)“…wage provisions of the Fair Labor Standards Act (“FLSA”), 29 U.S.C. § 206 (a), for the work he was compelled to d…”
- Christensen v. Harris County (Supreme Court of the United States 2000, 529 U.S. 576)“…in the private sector of the economy or the public sector. 29 U. S. C. §§ 206 , 207 (1994 ed. and Supp. III). In 1985…”
- Barrentine v. Arkansas-Best Freight System, Inc. (Supreme Court of the United States 1981, 450 U.S. 728)“…a minimum wage under § 6 of the Fair Labor Standards Act, 29 U. S. C. § 206 , may not be waived through a collectiv…”
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
Also relied on in: Ohio Debt Collection Laws: Garnishment Formula, the 6-Year Consumer Debt Rule, and Repossession, Federal Minimum Wage 2026: $7.25 an Hour Since 2009, Minimum Wage by State 2026: All 50 States and DC
§ 218Relation to other lawsIn forcecited in 52 of our articles
No provision of this chapter or of any order thereunder shall excuse noncompliance with any Federal or State law or municipal ordinance establishing a minimum wage higher than the minimum wage established under this chapter or a maximum work week lower than the maximum workweek established under this chapter, and no provision of this chapter relating to the employment of child labor shall justify noncompliance with any Federal or State law or municipal ordinance establishing a higher standard than the standard established under this chapter. No provision of this chapter shall justify any employer in reducing a wage paid by him which is in excess of the applicable minimum wage under this chapter, or justify any employer in increasing hours of employment maintained by him which are shorter than the maximum hours applicable under this chapter.
Official text (excerpt) · last checked 2026-07-28 · Read the full text in our law library · Verify at uscode.house.gov
Cited in 312 court opinions in our collectionLatest citing opinion in our collection: 2026
Opinions citing this section in our collection:
- Philip Williamson Itzik Riefronda Kirlin Thomas Painter,plaintiffs-Appellants v. General Dynamics Corporation,opinion (Court of Appeals for the Ninth Circuit 2000, 208 F.3d 1144)“…wage, hour, and child labor legislation. See 29 U.S.C. § 218 (a). 1 *1151…”
- United States v. Klinghoffer Bros. Realty Corp., Irving Jacobson and Albert Klinghoffer (Court of Appeals for the Second Circuit 1961, 285 F.2d 487)“…agreement to accept reduced pay is valid, notwithstanding 29 U.S.C. § 218 . White v. Witwer Grocer Co., 8 Cir.,…”
- Pacific Merchant Shipping Ass'n v. Aubry (Court of Appeals for the Ninth Circuit 1990, 918 F.2d 1409)“…han the maximum workweek established under this chapter. 29 U.S.C. Section 218 (a). The employees and the United State…”
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
Also relied on in: Alabama Minimum Wage 2026: $7.25 Federal, No State Rate, Alaska Minimum Wage 2026: $14.00 an Hour, $15.00 in July 2027, Arizona Minimum Wage 2026: $15.15 Per Hour, $15.65 in 2027
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Sources and References
- Montana DLI: State Minimum Wage(erd.dli.mt.gov).gov
- Montana DLI: 2026 Minimum Wage Determination Letter(erd.dli.mt.gov).gov
- Montana DLI: Filing a Wage Claim(erd.dli.mt.gov).gov
- 29 U.S.C. 218 (relation to other laws)(law.cornell.edu)
- U.S. Department of Labor: Minimum Wage FAQ(dol.gov).gov
- 29 U.S.C. 206 (federal minimum wage)(law.cornell.edu)
- MCA 39-3-409 (adoption of minimum wage rates)(leg.mt.gov).gov
- MCA 39-3-406 (exclusions)(leg.mt.gov).gov
- MCA 39-3-407 (enforcement)(leg.mt.gov).gov
- MCA 39-3-206 (penalty for failure to pay wages)(leg.mt.gov).gov
- MCA 39-3-207 (period to recover wages and penalties)(leg.mt.gov).gov