Montana State Minimum Wage

The Montana state minimum wage has been increasing gradually over the past several years. In 2023 the Montana min wage is $9.95 per hour. This represents a $0.75 increase from the rate in January 2022 and equates to a percentage increase of 8.15%.

Understanding and keeping up-to-date with the Montana minimum wage are important for employers in the state to ensure their employees are paid according to the law. Likewise, for employees in Montana, it is important for them to know what the absolute minimum is that they should be paid to protect their workers’ rights.

Montana’s minimum wage increase is calculated via the Consumer Price Index which measures a cost-of-living adjustment within the state. Many believe this is the fairest way of increasing Montana’s min wage each year.

Did the Montana Minimum Wage Go Up?

The graphic below displays the Montana state minimum wage over the past several years, with the rate dating back from 2018 all the way to the present 2023. As you can see, the Montana minimum wage has been increasing steadily and consistently over the past few years.

If you are a full-time worker on Montana state minimum wage, your earnings could be as follows:

• Daily Minimum Wage: $79.60 (based on an 8-hour working day).
• Weekly Minimum Wage: $398.00 (based on a 40-hour week).
• Yearly Minimum Wage: $20,696.00 (based on being paid 52 weeks per year).

You can view and download the Montana minimum wage labor law poster for 2022-2023 here at no charge. Employers must display an official poster outlining the requirements of the Fair Labor Standards Act (FLSA), ensuring that accurate employee time and pay records are kept.

Montana Minimum Wage 2023

The Montana minimum wage has been increasing each year since 2016. The first time Montana increased its minimum wage above the federal min wage level was in 2011 when it increased from $7.25 to $7.35.

Unlike most other states, Montana does not have specific laws that apply to unique employment situations such as the hospitality industry. According to the Montana Department of Labor & Industry, no tip credit, meal credit, or training wage is allowed under the Montana minimum wage 2021 laws.

For ongoing Montana minimum wage increases each year, the department of labor and industry calculates the cost-of-living adjustment based on an increase in the consumer price index (CPI). This is calculated between August of the current year and August of the preceding year.

If there is no increase in the CPI, then generally, there is no Montana minimum wage increase, but if there is, the min wage per hour is increased by this amount and rounded up to the nearest 5 cents.

To find out more information regarding the US minimum wage by state, check out our page that has a table in alphabetical order of all 50 states, including historical state minimum wage rates and increases from previous years.

There are some exceptions to the minimum wage in Montana, those working in tipped employment roles are eligible for a different minimum wage rate. These jobs include servers at restaurants, bartenders, and hotel employees.

Montana Minimum Wage History

The table below provides the current rate and history of Montana’s minimum wage over the past 40+ years since 1983. You can see when there were increases in the minimum wage, how much they were, and what percentage increase it represents each year.

Montana Minimum Wage Exemptions

In addition to the regular minimum wage rate, there are a few Montana state minimum wage exemptions that typically depend on your age or employment situation. Below are the various minimum wage exemptions with some situational examples.

Montana Student Minimum Wage

The minimum wage for student employees in Montana is 85% of the Montana minimum wage, making their hourly pay $8.46 per hour in 2023.

This hourly rate is for any hours worked up to 20 hours per week. As a student employee, once you surpass 20 hours per week, you will be eligible to be paid the Montana state minimum wage rate of $9.95 per hour.

Being a student can be financially challenging, leading many students to pick up part-time jobs to make extra money while studying. Despite a student minimum wage rate, many Montana employers will not necessarily follow it and pay you equal to or more than the statewide minimum wage.

Many work-study programs are available at universities, which is a route many students go down. Still, coffee shop, cafe, bar, and restaurant jobs are commonly taken by students as they can work them into their class schedule.

Montana Under 20 Minimum Wage

If you are under 20 years old in Montana, federal law allows your employer to pay you as little as $4.25 per hour for your first 90 days of employment.

Once the 90-day period is over, you will be eligible to be paid the 2023 Montana minimum wage of $9.95 per hour or potentially even more.

Fortunately for young workers, this is 90 calendar days and not 90 working days; therefore, it can be completed relatively quickly and within about three months.

Montana Tipped Minimum Wage

There are two tipped minimum wage rates in the state of Montana, a minimum wage for employees working for a business that grosses annual sales over $110,000, which is the regular minimum wage of $9.95 per hour.

The second tipped minimum wage rate is $4.00 per hour for employees working for businesses that are not covered by the Fair Labor Standards Act and with gross annual sales of $110,000 or less. With the $4.00 tip minimum wage rate, you will be eligible for a tip credit rate of $5.95 if you do not make $9.95 per hour with your tipped wage and tips included.

Montana Overtime Minimum Wage

Once you work over 40 hours a week, you are eligible to be paid an overtime rate of 1.5 times your hourly wage for every hour you work past 40. So, the overtime minimum wage in Montana is $14.93 per hour, 1.5 times the minimum wage of $9.95 per hour.