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Wednesday, December 13, 2017

2018 Montana Minimum Wage Increase

Montana’s Minimum Wage is set to rise to $8.30 per hour effective January 1, 2018 pursuant to Montana Code Annotated 39-3-409.  The current 2017 wage is $8.15, which means an increase in 15 cents per hour.  No tip credit, training wage or meal credit is allowed in the State of Montana, so all businesses covered by the Fair Labor Standards Act are required to pay at least Montana minimum wage. 

The law requires a minimum wage adjustment based on changes in inflation as measured by the Consumer Price Index (CPI) from August of the preceding year to August of the year in which the calculation is made.  An adjustment to the minimum wage is to be calculated no later than September 30 of each year based upon any increase in the CPI, rounded to the nearest five cents. 

Also, remember that overtime hours are calculated on a weekly basis, and NOT a bi-weekly basis! Employees who work in excess of 40 hours in a single workweek must receive overtime compensation of at least 1.5 times their regular hourly rate for those hours worked over 40. 

Additional information on Montana’s minimum wages can be found at the Dept of Labor website