Montana MINIMUM WAGES

As of January 1, 2025, Montana’s minimum wage rose to $10.55 per hour, adjusted annually for inflation. The state doesn’t allow tip credits or reduced training wages—everyone must earn at least the full rate.

Small businesses earning under $110,000 and not covered by federal law may pay $4.00 per hour, but most workers qualify for the higher wage. Overtime is paid at 1.5 times the regular rate after 40 hours.

25th April, 2025
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Montana State Minimum Wage for 2025

Effective January 1, 2025, Montana’s minimum wage rates lies at $10.55 per hour for non-tipped employees. This rise is a part of routine annual cost-of-living adjustments based on Consumer Price Index (CPI).

Montana doesn’t allow any tip credit, meal credit or training wage reductions, ensuring all employees are paid the full minimum wage rate. Businesses with gross annual sales of $110,000 or less are not covered by the FLSA are allowed to pay a lower wage of $4.00 per hour.

Montana mandates overtime law, entitling non-exempt employees an overtime pay 1.5 times their regular rates for working beyond 40 hours a week.

The state has uniform minimum wages across all its cities, mandating every city pays the same minimum wage of $10.55 per hour.

Minimum Wages in Montana Cities

The table below details minimum wage rates across all the cities of Montana.

City Non-Tipped Minimum Wage Tipped Minimum Wage
Billings $10.55 $10.55
Missoula $10.55 $10.55
Great Falls $10.55 $10.55
Bozeman $10.55 $10.55
Butte $10.55 $10.55
Helena $10.55 $10.55
Kalispell $10.55 $10.55
Havre $10.55 $10.55
Anaconda $10.55 $10.55
Livingston $10.55 $10.55
Laurel $10.55 $10.55
Lewistown $10.55 $10.55
Whitefish $10.55 $10.55
Glendive $10.55 $10.55
Columbia Falls $10.55 $10.55
Polson $10.55 $10.55
Hamilton $10.55 $10.55
Dillon $10.55 $10.55
Libby $10.55 $10.55
Shelby $10.55 $10.55
Deer Lodge $10.55 $10.55
Hardin $10.55 $10.55
Glasgow $10.55 $10.55
Ronan $10.55 $10.55
Wolf Point $10.55 $10.55
Colstrip $10.55 $10.55
Miles City $10.55 $10.55
Belgrade $10.55 $10.55
Sidney $10.55 $10.55
Cut Bank $10.55 $10.55

Threshold For Employees Exempt

Employees are classified as exempt or non-exempt under the Fair Labor Standards Act (FLSA) (also called United States Labor Law). Depending on the classification, the minimum wage changes implemented every year affect employees differently.  

  • Nonexempt employees must be paid at least the state minimum wage of $10.55 per hour, along with overtime pay of 1.5 times their regular rates for working beyond 40 hours per week.
  • Exempt employees are typically salaried who perform executive, administrative, or professional duties and are exempt from overtime pay. 

To qualify as exempt employees in Montana, employees must receive a minimum salary of $844 per week, or $43,888 annually. This threshold applies to employees from July 1, 2024. 

Once the minimum wage for the state increases, if an exempt employee starts earning less than $844 per week, employers have two options:  

  • Raise their salaries to maintain exempt status, which would increase business costs by $375 per week or $19,500 annually per employee. 
  • Convert them to non-exempt status, paying them hourly and tracking any overtime worked. 

Historical Data of Montana Minimum Wages 

Since 1997, Montana has adhered to the federal minimum wage of $5.15 per hour. In 2005, voters approved Initiative 151, which established a state minimum wage higher than the federal rate.  

After Initiative 151, Montana’s minimum wage increased to $6.15 per hour effective from January 1, 2007. It was one of the several states to exceed the federal minimum wage during that time.  

When the federal minimum wage increased to $7.25 in 2009 through the Fair Labor Standards Act amendments, Montana’s rate had already risen above this level due to a unique feature of the 2006 law: annual cost-of-living adjustments based on the Consumer Price Index (CPI). 

As of late, Montana stands as the 27th highest state compared to other states for minimum wages.  

Here is a table that shows the incremental rise in the minimum wages of Montana between 1968 and 2024. 

Time Period Year Minimum Wage (in $)
1968 to 1981 1968* $1.15 & $1.60
1970* $1.30 & $1.60
1972 1.60
1976* 1.80
1979 2.00
1980 2.00
1981 2.00
1988 to 1998 1988 3.35
1991 3.35
1992 4.25
1994 4.25
1996 4.25**
1997 4.25**
1998 5.15**
2000 to 2006 2000 5.15**
2001 5.15**
2002 5.15**
2003 5.15**
2004 5.15**
2005 5.15**
2006 5.15**
2007 to 2013 2007 5.15**
2008 5.85**
2009 6.55**
2010 7.25**
2011 7.25**
2012 7.25**
2013 7.25**
2014 to 2019 2014 7.25**
2015 8.00**
2016 9.00**
2017 9.00**
2018 9.00**
2019 9.00**
2020 to 2023 2020 9.00**
2021 9.00**
2022 9.00**
2023 10.50**

* – Under the FLSA, the two rates shown in 1968, 1970, and 1976 reflect the former multiple-track minimum wage system in effect from 1961 to 1978.

*** – Rates applicable to employers of four or more.

Source: https://www.dol.gov/agencies/whd/state/minimum-wage/history

Exemptions in Minimum Wages of Montana  

All employees in the state of Montana must receive minimum wages for every hour worked as long as they’re not exempted from it. Employees are exempted if they belong to any of the following categories: 

  • Students and apprentices in educational or training programs 
  • Domestic workers and caregivers (including babysitters and home health aides) 
  • Family members and dependents of employers 
  • Professional employees (executives, administrators, IT professionals, outside sales) 
  • Nonprofit and seasonal workers (volunteers, camp employees) 
  • Federal employees and resident facility managers 

Apart from these, there are exemptions for overtime provisions under minimum wages for employees belonging to: 

  • Transportation workers (truck drivers, taxi drivers, air carrier employees) 
  • Agricultural and forestry workers 
  • Sales professionals (car/boat salespeople, advertising sales, commission-based retail workers) 
  • Public service employees (police, firefighters, sheriffs) 
  • Healthcare workers with alternative work periods 
  • Media employees (radio announcers, news editors) 
  • Legislative branch employees 

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    Frequently Asked Questions

    Yes, Montana's minimum wage increased to $10.55 per hour as of January 1, 2025, due to automatic annual adjustments based on the Consumer Price Index.

    As of 2025, a comfortable living wage in Montana varies by location but generally ranges from $50,000-$70,000 annually for a single person. Cities like Bozeman and Missoula require higher incomes than rural areas.

    For exempt employees in Montana (2024), the minimum salary is $43,888 per year ($844/week) to qualify for exempt status.

    Montana law doesn't define full-time employment, but the standard 40-hour workweek is typically considered full-time. Employers can set their own definitions

    Yes, Montana requires overtime pay (1.5 times the regular rate) for non-exempt employees who work more than 40 hours in a workweek, with certain exemptions. Montana follows federal overtime laws with some state-specific exemptions.

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