- Montana's pay rules at a glance
- No tip credit, no meal credit, no training wage
- How the yearly rate is set
- The $4.00 small-business exception
- Final pay rules
- Breaks, raises and pay cuts
- Montana's rate over recent years
- Montana and its neighbours
- Paydays
- Mistakes Montana employers make
- Teen workers under federal rules
- My verdict
- Frequently asked questions
The minimum wage in Montana is $10.85 an hour as of October 2026, and it rises to $11.20 on January 1, 2027. Montana allows no tip credit, so tipped staff get the full $10.85 in cash, and only a business outside federal coverage with $110,000 or less in yearly sales may pay $4.00.
Montana's Department of Labor and Industry sets the rate each year by a cost-of-living formula. This page draws on the department's minimum wage page, its wage history and its wage and hour FAQ, plus the U.S. Department of Labor's state, tipped, history and payday tables, all read in October 2026.
Montana's pay rules at a glance
| Rule | Montana (as of October 2026) |
|---|---|
| Minimum wage | $10.85 an hour |
| From January 1, 2027 | $11.20 an hour |
| Tipped staff | $10.85 in cash, tips on top |
| Small business not under federal law, sales $110,000 or less | $4.00 an hour |
| Tip, meal or training credits | None allowed |
No tip credit, no meal credit, no training wage
Here's the line that surprises owners moving in from other states. The department says no tip credit, meal credit or training wage is allowed under Montana's wage and hour laws. So a server is paid $10.85 an hour before tips, a new hire can't start on a lower training rate, and the cost of staff meals can't be taken off the minimum. Montana is in the federal tipped table's group of states that require the full minimum before tips.
If you share tips among staff, my guide to tip pooling covers how pools work, but in Montana the pool sits on top of a full cash wage.
How the yearly rate is set
The department calculates a cost-of-living adjustment from the rise in the Consumer Price Index from August of the previous year to August of the current year, and sets the new rate no later than September 30. If there's no rise, there's no adjustment, and any rise is rounded to the nearest five cents. The rate is always the greater of the federal minimum or the Montana figure, which is how $10.85 becomes $11.20 in 2027.
The $4.00 small-business exception
A business that isn't covered by the federal Fair Labor Standards Act and has gross annual sales of $110,000 or less may pay $4.00 an hour. The department adds the catch: if an individual worker in that business produces or moves goods between states, or is otherwise covered by federal law, that worker must get the greater of the federal $7.25 or Montana's minimum. The federal reference guide explains that individual coverage can apply even when the business itself is too small.
Final pay rules
Montana's final pay rules are tighter than most. The department's FAQ sets them out:
- Laid off or fired: all wages are due immediately, within four hours or by the end of the business day, whichever comes first.
- With a written policy that extends the time, the wages are due by the next payday for that period or within 15 calendar days, whichever comes first.
- Quit: wages are due on the next scheduled payday for that period or within 15 calendar days, whichever comes first.
- While still employed: pay is due within 10 business days after the end of the pay period.
My final paycheck guide compares these timings with other states.
Breaks, raises and pay cuts
The FAQ says there's no state or federal law requiring rest breaks or meal periods in Montana. If an employer offers a break, it's counted as paid time. Pay raises aren't required by law either, and an employer can cut a rate of pay, but only going forward and with notice, never backdated. The agreed wage stands until a new one is agreed.
Montana's rate over recent years
| Year | Montana rate |
|---|---|
| 2021 | $8.75 |
| 2022 | $9.20 |
| 2023 | $9.95 |
| 2024 | $10.30 |
| As of October 2026 | $10.85 |
| January 1, 2027 | $11.20 |
Montana and its neighbours
| State | Basic minimum wage (as of October 2026) |
|---|---|
| Montana | $10.85 |
| South Dakota | $11.85 |
| North Dakota | $7.25 |
| Idaho | $7.25 |
| Wyoming | $5.15, federal $7.25 for covered employers |
Paydays
The federal payday table notes that in Montana, if no pay period has been set, it's presumed to be semi-monthly. Setting a clear schedule in writing avoids that default.
Mistakes Montana employers make
- Paying tipped staff a reduced cash wage, which Montana doesn't allow.
- Starting new hires on a training rate below $10.85.
- Holding a fired employee's pay to the next payday without a written policy.
- Using the $4.00 rate for a worker whose job touches interstate commerce.
- Forgetting the January rise to $11.20.
Teen workers under federal rules
Montana has no training wage, but federal child labour rules still shape teen shifts. The Department of Labor's reference guide says 14 and 15 year olds can work no more than 3 hours on a school day, 18 hours in a school week, 8 hours on a non-school day or 40 hours in a non-school week, and only between 7 a.m. and 7 p.m. outside summer. Whatever the hours, a teen in Montana still earns the full $10.85.
Want AI doing the heavy lifting in your marketing?
I build the systems that handle the boring 80 percent, so you get your week back. Done properly, with the human kept in.
My verdict
Montana's headline figure is moderate, but its rules are strict. There's no tip credit, no training wage and very little time to pay someone you let go. Plan for $11.20 from January 2027, pay tipped staff the full rate in cash, and have a written final pay policy before you ever need it.
Frequently asked questions
What is the minimum wage in Montana?
It's $10.85 an hour as of October 2026, rising to $11.20 on January 1, 2027.
Does Montana allow a tip credit?
No. The department says no tip credit, meal credit or training wage is allowed.
Who can pay $4.00 an hour in Montana?
A business not covered by federal law with gross annual sales of $110,000 or less, except for staff covered individually by federal law.
When must Montana employers pay a fired employee?
Immediately, within four hours or by the end of the business day, unless a written policy extends it.
When is final pay due if I quit in Montana?
On the next scheduled payday for that period or within 15 calendar days, whichever comes first.
Does Montana require breaks?
No. The department says no state or federal law requires rest or meal breaks, but breaks that are offered are paid.
How is Montana's minimum wage adjusted?
By the change in the Consumer Price Index from August to August, set by September 30 and rounded to the nearest five cents.
Can a Montana employer cut an employee's pay rate?
Yes, going forward and with notice, but never backdated.
