What Happened?
As a reminder for all employers in Montana, the state minimum wage will increase to $10.85 per hour starting January 1, 2026, reflecting the annual cost-of-living adjustment tied to the Consumer Price Index (CPI).

Overview

Why this matters: Employers must ensure compliance with state wage laws to avoid penalties and maintain accurate payroll practices.

Action Steps for Compliance

• Update payroll systems to reflect the new rate by January 1, 2026.
• Download and post the updated Minimum Wage Notice in a visible location.
• Confirm no deductions or credits reduce wages below the state minimum.
• Review exceptions for small businesses carefully (gross sales $110,000 or less, non-FLSA coverage).

Additional Information

• Montana’s minimum wage will rise from $10.55 to $10.85 per hour.
• Adjustment is based on CPI changes and rounded to the nearest $0.05.
• Updated Minimum Wage Notice and 2026 Wage & Hour Poster are now available from the Montana Department of Labor & Industry.

Key Risks for Employers

• Failure to update payroll systems could result in underpayment.
• Not posting the updated notice may lead to non-compliance.
• Misapplication of exceptions or credits (e.g., tip credit) is prohibited under Montana law.

For additional details:

• Montana DOL – Minimum Wage Press Release and Resources
• For Montana and multi-state minimum wage increases, see: Vensure’s Minimum Wage Chart
  
  

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