Montana's minimum wage in 2026 is $10.85 per hour. The tipped minimum wage is also $10.85 per hour. Montana's minimum wage is $10.85/hr, adjusted annually for inflation. No tip credit is allowed — tipped employees must receive the full minimum wage.
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Montana has set its minimum wage above the federal floor of $7.25/hr. As an employer, you must pay at least the applicable minimum wage to all non-exempt employees. Getting this wrong can result in back pay claims, penalties, and lawsuits.
Current Montana Minimum Wage: $10.85/hr
| Standard Minimum Wage | $10.85/hr |
| Tipped Minimum Wage | $10.85/hr |
| Federal Minimum Wage | $7.25/hr |
When both federal and state minimum wages apply, employers must pay the higher of the two. In Montana, the state rate of $10.85/hr applies.
Tipped Employee Minimum Wage: $10.85/hr
Montana does not allow a tip credit. Tipped employees must be paid at least the full minimum wage of $10.85/hr in direct wages, plus any tips they earn.
Federal vs. State Minimum Wage
The federal minimum wage has been $7.25/hr since 2009. Montana has set a higher rate. A business not covered by the Fair Labor Standards Act whose gross annual sales are $110,000 or less may pay $4.00 per hour, but any employee who is individually covered by the FLSA must be paid the higher state rate.
Local Minimum Wage Exceptions
Montana's minimum wage is $10.85/hr, adjusted annually for inflation. No tip credit is allowed — tipped employees must receive the full minimum wage.
Overtime and Minimum Wage
Under the FLSA, non-exempt employees who work more than 40 hours in a workweek must be paid at least 1.5x their regular rate. The overtime rate is based on the actual rate paid (which must be at least the minimum wage), not a fixed multiplier of the minimum.
For more on overtime rules, see our Overtime Pay Rules guide.
Employer Compliance
- Pay at least $10.85/hr to all non-exempt employees
- Track tipped employee earnings and make up tip credit shortfalls
- Display the required minimum wage poster in a visible workplace location
- Keep accurate payroll records for at least 3 years (federal requirement)
- Monitor for local minimum wage ordinances in your municipality
Frequently Asked Questions
What is the Montana minimum wage in 2026?
The Montana minimum wage in 2026 is $10.85 per hour. Montana's minimum wage is $10.85/hr, adjusted annually for inflation. No tip credit is allowed — tipped employees must receive the full minimum wage.
What is the tipped minimum wage in Montana?
The tipped minimum wage in Montana is $10.85 per hour. Montana does not allow a tip credit, so tipped employees must be paid the full minimum wage plus any tips they earn.
Does Montana follow the federal minimum wage?
No, Montana has set its own minimum wage at $10.85/hr, which is above the federal minimum of $7.25/hr.
What are the penalties for violating Montana minimum wage laws?
Employers who fail to pay the minimum wage in Montana may face back pay obligations, penalties, fines, and potential lawsuits from affected employees. The Montana Department of Labor and Industry, Employment Relations Division, enforces minimum wage compliance.
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Legal & Tax Disclaimer
This article is for general informational purposes only and does not constitute legal, tax, or professional advice. Employment laws, tax regulations, and compliance requirements change frequently. The information on this page reflects our understanding as of February 2026 and may not reflect recent changes in federal or Montana state law.
Do not act or refrain from acting based solely on the information in this article. Always consult a qualified attorney, CPA, or HR professional familiar with Montana law before making payroll or compliance decisions for your business.