Payment of Wages: Montana

Federal law and guidance on this subject should be reviewed together with this section.

Authors: Jason Ritchie, Holland & Hart LLP

Summary

• The term wages is specifically defined in the Montana wage payment law. See Definition of Wages.
• Employers in Montana may pay their employees in cash, by check, direct deposit or electronic paycard. See Wage Payment Methods.
• Montana employers may establish the length of their pay periods. Payments may be held for up to 10 days after the pay period ends. Penalties apply for noncompliance. See Pay Frequency.
• With employees' consent, Montana law allows employers to make various deductions from employees' pay. See Permitted and Prohibited Wage Deductions.
• With each payment of wages, employers must provide each employee with an accurate, itemized written pay statement. See Pay Statement Requirements.
• An employer must provide written notice (or a poster) of the rate(s) and basis of pay and paydays if demanded by an employee in writing before starting work. Certain employers are excluded from this requirement. See Employee Notification Requirements.
• When employment ends, the proper time within which to pay the terminated employee depends on whether the termination was voluntary or involuntary. Special rules apply to payment of accrued vacation, severance pay, sick leave and paid time off. See Final Pay.
• Montana's general estates law may apply to an employer who owes wages or other property to a deceased employee. See Deceased Employee Wages.
• Wages are considered abandoned property if they are unclaimed by an employee for one year. Employers' responsibilities include notifying affected employees, filing reports with, and remitting unclaimed amounts to, the state Department of Revenue within certain prescribed time periods. See Unclaimed Wages.