By Payroll and Entitlements Editorial Staff
The minimum wage in Montana will increase to $8.65 per hour on January 1, 2020, pursuant to statutory law.
Montana Code Annotated Section 39-3-409 requires a minimum wage adjustment annually based on changes in inflation as measured by the Consumer Price Index for Urban Consumers (CPI-U) 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-U, rounded to the nearest five cents.
The current 2019 minimum wage rate is $8.50. Based on an increase in the CPI-U of 1.75% from August 2018 to August 2019, the calculation used for determining the minimum wage rate for 2020 is: $.850 × 1.75% = $0.148, rounded to $0.15.
A business not covered by the federal Fair Labor Standards Act whose gross annual sales are $110,000 or less may pay employees $4.00 per hour. If an employee is producing or moving goods between states or otherwise covered by the federal FLSA, then the employee must be paid the greater of either the federal minimum wage or Montana’s minimum wage. (Montana Department of Labor and Industry, News Release, September 30, 2019.)
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