Wage-and-hour ground rules for hotel and hospitality employers in Montana — minimum wage, tipped-employee rules, overtime, breaks, premium pay, and the hotel-specific obligations that apply on top. Figures below were last reviewed on June 12, 2026; most rates adjust annually.

Verified as of June 12, 2026 — every figure on this page was checked against the official sources listed at the bottom on that date. How we verify →

Minimum wage
$10.85
effective January 1, 2026
Tipped cash minimum
$10.85
no tip credit allowed
Daily overtime
None
None (40-hr week)
Meal / rest breaks
No
meal: Not required · rest: Not required

Minimum wage#

The Montana minimum wage is $10.85 per hour, effective January 1, 2026. CPI-adjusted each Jan. 1 (announced by Sept. 30); $10.85 for 2026 per Montana DLI. Exception: a business NOT covered by the FLSA with gross annual sales of $110,000 or less may pay $4.00/hr — but any individual employee covered by the FLSA must get the higher of federal or state minimum (Mont. Code Ann. 39-3-409).

Tipped employees & tip pooling#

Montana does not allow a tip credit — tipped employees must receive the full minimum wage of $10.85 in direct cash wages before tips. No tip credit, training wage, or meal credit is allowed in Montana (Mont. Code Ann. 39-3-402(7); DLI poster). Tipped hotel staff receive the full $10.85 in cash plus tips.

Tip pooling#

No state pooling statute; tips are the employee's property and federal FLSA pooling rules apply (no employer/manager retention; pools may include back-of-house since no tip credit is taken). (29 U.S.C. 203(m))

See the federal baseline rules in our tip credit and tip pooling briefs — the stricter of federal or Montana law controls.

Overtime#

Overtime is due after 40 hours in a workweek. 40-hour weekly standard (Mont. Code Ann. 39-3-405); no daily overtime. Special longer thresholds exist for some seasonal/agricultural and students of seasonal recreational areas (e.g., 48-hr student seasonal amusement rule) — check before applying to seasonal resort staff.

Run the math — including the tipped-overtime trap — with the tipped overtime calculator.

Meal & rest breaks#

Meal breaks: Not required by Montana law for adult employees. Federal law requires only that breaks under 20 minutes, if offered, be paid.

Rest breaks: Not required by Montana law.

Scheduling & premium pay#

  • Reporting-time pay: None required by state law.
  • Split-shift premium: None.
  • Spread of hours: None.

Service charges & gratuities#

Montana has no service-charge-specific statute — the federal tip/service-charge line (and IRS treatment) controls. Background: service charges, auto-gratuities & resort fees.

Pay administration#

  • Pay frequency: Wages due within 10 business days after the end of the pay period (Mont. Code Ann. 39-3-204); no fixed semimonthly mandate.
  • Wage statements: Employers must provide an itemized statement of deductions with each payment (Mont. Code Ann. 39-3-101 et seq.; ERD guidance). (Mont. Code Ann. 39-3-204)
  • Exempt salary floor: $684.00/week (federal)
  • Lodging credit: Not permitted — Montana DLI: no meal credit allowed against the minimum wage; staff housing at resorts cannot be used to offset the cash minimum (deductions only by lawful written agreement for items beyond MW)..

No local minimum wage ordinances exist (and none are expected; no express preemption statute). Resort-heavy markets (Whitefish, Big Sky, Gardiner/West Yellowstone) compete well above the $10.85 floor; the no-tip-credit and no-meal-credit rules are the main traps for out-of-state hotel operators.

Official sources#

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