Compliance Watch:

What are my rights as a salaried employee in Montana?

In Montana, a salaried employee is any worker who earns a fixed predetermined compensation at the end of every pay period regardless of the number of hours worked, quality, or quantity of work. State laws do not define the length of a pay period, leaving the determination of the frequency of payment to private agreements between employers and employees. However, Montana salaried employees laws require employers to pay employee salaries within 10 days of falling due.

The Montana Code requires employers to pay salaries in U.S. currency. Employees can receive their pay in checks that are convertible to cash on demand and payable at full face value. However, employees can consent in writing to electronic funds transfers. 

Salaried employment in Montana is classified into two categories. The first category comprises exempt salaried employees, who are not subject to the state’s minimum wage and overtime laws. The second category comprises non-exempt employees, who are bound by both sets of laws and eligible for overtime.

This table presents general differences between salaried and hourly employees in Montana. Please note that employment laws can change and individual employment agreements may vary. Therefore, it’s important to consult an employment attorney, HR professional, or the Montana Department of Labor and Industry for more specific legal advice.

In Montana, salaried employees have certain rights and protections provided by federal and state labor laws. Accordingly, salaried employees in Montana are entitled to:

• Minimum Wage: Salaried employees in the state are entitled to either the state minimum wage of $10.30/hour or the federal minimum salary threshold for exempt employees. 
• Overtime Pay: Eligible salaried employees are eligible for overtime pay for working over 40 hours in a workweek. 
• Equal Pay: Salaried employees in Montana are entitled to equal pay for equivalent work, regardless of their gender or other protected characteristics. Individuals who offer the same service, are employed to do the same amount of work and perform the same class of work or labor in the same industry, school, establishment, office, or other places of employment should receive the same amount of compensation. 
• Family and Medical Leave: Eligible salaried employees can take up to 12 weeks of unpaid job-protected leave for purposes designated by the Family and Medical Leave Act (FMLA).
• Protection from Discrimination and Harassment: Salaried employees in Montana are protected from discrimination and harassment based on protected factors such as race, creed, religion, color, national origin, physical or mental disability, marital status, or gender.
• Protection from Retaliation: Montana has whistleblower protection laws that protect employees who report labor violations against retaliation by their employers. The laws prohibit employers from terminating, discharging, demoting, suspending, threatening, or retaliating in any other manner against an employee for participating in any legal action.

Please note that labor laws can change over time. Therefore, it’s essential to refer to the most up-to-date information from the Montana Department of Labor and Industry or consult an employment attorney to understand your specific entitlements and legal protections as a salaried employee in the state.

Yes. Although compensation by salary basis is one of the factors that determine exemption from overtime laws, it does not preclude some employees from earning overtime pay. Overtime pay applies to salaried employees who meet the following criteria:

• Earn less than the federal minimum salary threshold for exempt employees.
• Are bound by the state’s overtime laws.
• Do not perform the job duties that designate salaried executive, professional, and administrative employees as exempt as per the Fair Labor Standards Act (FLSA).

Eligible salaried employees have the right to earn overtime pay at a rate of 1.5 times their regular wage as per Montana overtime laws.

Yes, Montana wage and hour laws identify three types of deductions that an employer can make from employee salaries. First, an employer can deduct an employee’s wages when required to do so by law. Therefore, employers can deduct state and federal taxes, wage garnishment orders such as alimony and child support, and Social Security.

Second, employees can authorize their employers to withhold portions of their pay for contributions to health plans, savings plans, and charitable deductions. Employees must authorize these deductions in writing. Third, employers can make deductions for incidentals for the employee’s benefits. These include board and lodging fees for employees who reside in their employers’ premises or place of work. 

There’s a legal precedent prohibiting employers in the state from making deductions to recover the following costs:

• The cost of damages caused by an employee’s negligence.
• The cost for unauthorized truck mileage.
• The cost of retrieving an employer’s property abandoned by an employee.
• The cost of cargo losses.
• The cost of liability insurance for damages caused by an employee’s negligence in the execution of their contracted duties.

The state encourages employers to allow flexible work arrangements but does not have separate regulations addressing work schedules that deviate from the standard 9-5 work days and 40-hour workweeks. However, its laws protect employees regardless of their work arrangements.

The state’s workers’ compensation laws apply to all employees, including remote employees. Additionally, remote employees who live outside the state but work for companies based in Montana are eligible for the state’s unemployment benefits.

Montana state departments have set a precedent for flexible work arrangements by allowing their employees to request different alternative arrangements if their job duties allow. Popular flexible work arrangements in the state include telework and remote work.

In Montana, exempt status refers to exemption from the state’s overtime laws and minimum wage laws. The state upholds the federal exemption criteria established by the FLSA and designates several other categories of employees in the state as either exempt from both overtime and minimum wage laws or exempt from just overtime laws. The categories of employees in Montana who are exempt from minimum wage and overtime laws include:

• Bona fide administrative, executive, and professional employees as per the FLSA.
• Some computer professionals and outside salespeople.
• Employees of the United States government and its agencies.
• Resident managers of lodging establishments or assisted living facilities.
• Volunteers.
• Workers who are employed in private homes for home care, childcare, or menial chores.

Here is the comprehensive list of employees who are exempt from minimum wage and overtime laws in the state.

A second category of exempt employees comprises employees who are exempt from overtime laws but subject to minimum wage laws. These include:

• Select salespeople.
• Drivers and loaders contracted to make local deliveries and compensated based on the number of delivery trips they make.
• Certain farm workers.
• Drivers whose employer operates taxicabs.
• Certain retail employees.

Here is the comprehensive list of employees who are exempt from overtime laws but entitled to the state’s minimum wage of $10.30 per hour.

Employees with exempt status in Montana as per the provisions of the FLSA include bona fide administrative, professional, and executive employees, certain outside salespeople, and some computer professionals. Exempt status has the following implications for these employees in the state:

• Salary Structure: All exempt employees are entitled to a fixed predetermined salary at the end of every pay period regardless of the number of hours worked. Therefore, exempt employees have a stable income, which can make financial planning easier.
• Overtime Exemption: Exempt employees are not bound by state and federal overtime laws. As such, they are not entitled to overtime pay, which can lead to long working hours without additional compensation.
• Job Scheduling: Exempt employees often have less flexibility since they work set schedules. 
• Benefits and Protections: Exempt employees may have more protections under federal labor laws such as unpaid breaks of up to 12 weeks as per the FMLA.

Exempt status has the following implications for employers:

• Fixed Labor Costs: Employers can predict labor costs more accurately because exempt employees receive a fixed salary. This makes budgeting and financial planning easier.
• Reduced Overtime Costs: Exempt employees are not entitled to overtime pay, which can reduce labor costs significantly. 
• Flexibility: Exempt employees may request more flexibility in terms of working hours and remote work options, requiring employers to make accommodations for different working arrangements.
• Compliance Complexity: Employers must be keen in ensuring that exempt employees meet specific job duty and salary requirements. Failure to do so can have legal and financial consequences.

Exempt employee status in Montana is typically determined by the FLSA. To be considered exempt in the state, an employee must meet the following criteria: 

• Basis of Compensation: The employee must be compensated on a salary basis.
• Minimum Salary Threshold: The employee’s salary must meet or exceed the minimum salary threshold of $844 per week ($43,888 annually) as established by the FLSA. 
• Job Duties: To qualify as exempt, an employee must perform specific job duties that fall under one of the following categories:
  • Executive Employees: Executive employees are considered exempt if they spend 50% or more of their time at work performing duties related to the management of the enterprise or one of its departments or managing other employees. Exempt executive employees also have significant authority over personnel matters.
  • Administrative Employees: Administrative employees qualify for exempt status if they exercise discretion in their work and their primary duties entail office or non-manual work that is directly related to the management or general business operations of the employer.
  • Professional Employees: Professionals such as teachers, doctors, and lawyers are considered exempt if their duties involve intellectual or creative work that requires advanced knowledge.
  • Outside Sales Employees: Sales employees whose primary duty is generating sales or obtaining orders away from the employer’s place of business are considered exempt if they meet the salary basis and salary level criteria.
  • Computer Employees: Salaried employees with specialized computer-related job duties such as programming and systems analysis are considered exempt if they meet all other criteria for exemption as per the FLSA.

The minimum wage in Montana is $10.30 per hour. This rate is applicable to all non-exempt employees, including salaried employees who do not meet the FLSA’s criteria for exemption. All employees who are not subject to minimum wage laws in the state are not eligible for the minimum wage. However, the exempt employees who meet the federal criteria for exemption are entitled to compensation of at least $844 per week as directed by the FLSA.

Eligible salaried employees in Montana have the right to earn overtime pay at a rate of 1.5 times their regular hourly rate. The state does not limit the number of overtime hours that an employee can accrue in a workweek. Further, Montana labor laws do not require employers to pay overtime to employees who work over 8 hours in a day. Rather, overtime accrues after the 40th hour of work in a workweek.

Montana wage and hour laws identify the following permissible deductions:

• Deductions Required by Law: An employer can deduct an employee’s wages when required to do so by law. Permissible deductions include state and federal taxes, garnishment orders such as alimony and child support, and Social Security.
• Voluntary Deductions: Employees can authorize their employers to withhold portions of their pay for contributions to health plans, savings plans, and charitable deductions. Employees must authorize these deductions in writing. 
• Deductions for the Employees’ Benefit: Employers can make deductions for incidentals for the employee’s benefit. These include board and lodging fees for employees who reside in their employers’ premises or place of work. 

The following deductions are explicitly prohibited:

• Deductions to recover the cost of damages caused by an employee’s negligence.
• Deductions to recover costs arising from unauthorized truck mileage.
• Deductions to recover the cost of retrieving an employer’s property abandoned by an employee.
• Deductions to recover the cost of cargo losses.
• Deductions to recover the cost of liability insurance for damages caused by an employee’s negligence in the execution of their contracted duties.

In Montana, state laws provide several benefits and protections for employees including the following: 

• Minimum Wage: Employees in Montana are entitled to a minimum wage of $10.30, which is higher than the federal minimum wage. 
• Overtime Pay: Eligible employees in Montana are entitled to overtime pay at a rate of 1.5 times their regular pay for all work done above 40 hours in a workweek. 
• Family and Medical Leave: Eligible salaried employees in Montana are entitled to extended leave of up to 12 weeks as per the FMLA. 
• Workers’ Compensation: Employees in Montana, including remote employees, are entitled to compensation insurance benefits for injuries and illnesses sustained in the execution of their duties.  
• Anti-Discrimination and Harassment: Montana state laws protect employees from discrimination and harassment based on the following characteristics:
  • Age
  • Marital Status
  • Physical or Mental Disability
  • Race 
  • National Origin
  • Color
  • Religion / Creed
  • Gender
  • Pregnancy
  • Political ideas 
  • Retaliation 
  • Vaccination Status

Potential labor law violations in Montana include employee misclassification, receiving compensation of less than the minimum wage, withheld wages, workplace discrimination, unsafe working conditions, or unauthorized wage deductions. If you believe your labor laws have been violated, you can reach out to the relevant authorities. You can report wage theft and related violations to the Montana Department of Labor & Industry by filling out a wage claim form.

If you’ve been discriminated against, you can file a self-drafted complaint with the Montana Department of Labor & Industry. Please note that you can only deliver a complaint by mail. Your complaint should reach the department within 180 days of the occurrence of the alleged act of discrimination.