Montana Minimum Wage Calculator 2026

Frequently Asked Questions

• What is Montana's minimum wage in 2026?

  Montana's minimum wage is $10.85 per hour effective January 1, 2026. This rate was determined following the annual Consumer Price Index (CPI) adjustment calculated by the Montana Department of Labor and Industry under MCA §39-3-409. It is $3.60 above the federal FLSA floor of $7.25/hr.

• Does Montana allow a tip credit for tipped workers?

  No. Montana prohibits tip credits entirely. Employers must pay tipped employees the full state minimum wage of $10.85/hr (as of 2026) before tips. Tips belong entirely to the employee — they cannot be used to offset the employer's minimum wage obligation. This contrasts sharply with the federal FLSA, which permits tip credits as low as $2.13/hr.

• What is the Montana small business minimum wage rate?

  Montana allows a reduced minimum wage of $4.00/hr only for businesses that are (1) NOT covered by the FLSA, (2) have gross annual sales of $110,000 or less, and (3) are not engaged in interstate commerce. All three conditions must be met. Most Montana businesses are FLSA-covered and must pay the full $10.85/hr.

• How is Montana's minimum wage calculated and adjusted each year?

  Under MCA §39-3-409, the Montana DLI calculates the annual adjustment based on the change in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from August of the prior year to August of the current year. The result is rounded to the nearest five cents. If the CPI does not increase, the minimum wage remains unchanged — it cannot decrease.

• Does Montana have a separate minimum wage for servers or restaurant workers?

  No. Montana does not have a separate tipped minimum wage for servers, bartenders, or other restaurant workers. All employees — tipped or not — must receive the full state minimum wage of $10.85/hr before tips. Employers cannot apply any tip credit to offset their wage obligation.

• Is there a training wage or youth minimum wage in Montana?

  No. Montana does not permit a training wage, youth wage, or reduced minimum wage for employees under 18. All covered employees — regardless of age or tenure — must receive the full $10.85/hr as of 2026. Montana also prohibits meal credits and lodging credits against the minimum wage.

• Are there local minimum wages higher than the state rate in Montana?

  As of 2026, no Montana city or county has enacted a local minimum wage higher than the statewide rate. Montana's minimum wage of $10.85/hr is set at the state level and applies uniformly throughout the state.

• What is the overtime rate for minimum-wage workers in Montana?

  Montana follows the FLSA overtime standard: 1.5× the regular rate for hours worked over 40 in a workweek. For a minimum-wage worker at $10.85/hr, the overtime rate is $16.28/hr. Montana has no daily overtime threshold — only the 40-hour weekly rule applies.

• Can Montana employers deduct meals or lodging from the minimum wage?

  No. Montana's Wage and Hour Payment Act explicitly prohibits meal credits and lodging credits as offsets against the minimum wage. Meals provided by the employer are a separate benefit and cannot reduce an employee's cash wage below $10.85/hr (as of 2026).

• What happens if a Montana employer pays below the minimum wage?

  Employees can file a wage claim with Montana's Employment Relations Division (ERD) at erd.dli.mt.gov or by calling (406) 444-6543. Employers found in violation may owe back wages plus a penalty of up to 110% of unpaid wages under MCA §39-3-206. Claims must be filed within 180 days of the underpayment. Civil suits are also an option.