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Previous Updates
- The citizenship or work authorization status that has been verified by the United States citizenship and immigration services' E-Verify program; or
- A completed Form I-9 with corresponding documents that establish both identity and employment authorization.
Effective January 1, 2022, Montana prohibits an employer from discriminating against an employee for the legal use of marijuana during non-working hours.
Effective October 1, 2021, the Montana Child Labor Standards Act is amended to establish an exemption from occupational prohibitions for student-employees if:
- The student-employee is under the direct and close supervision of a qualified and experienced person with experience in the occupation in which the minor is employed; and
- Safety instruction is given by the employer of the student-employee.
Employment Law Changes
Wrongful Discharge From Employment Act (WDEA)
Under the amended WDEA, the default probationary period is now extended to 12 months from 6 months after an employee’s date of hire. An employer may also set their own extended probationary period in their written policies. Any discharge that occurs following the probationary period must be for good cause (Montana does not subscribe to the at-will doctrine after the probationary period). Employers also now have broad discretion when making a decision to discharge any managerial or supervisory employee.
Employees must now serve a WDEA complaint within six months of filing their complaint. An employer may now notify employees of its internal grievance procedure within 14 days from the date of discharge and provide this notice by sending to the employee’s last known postal or email address. An employee’s failure to exhaust an employer’s internal grievance procedure can result in the dismissal of a WDEA claim.
Employers should review their policies to reflect these amendments.
Montana Human Rights Act (MHRA)
As a result of the COVID-19 pandemic, Montana has amended the MHRA to prohibit employers from refusing or barring an individual from employment or making compensation decisions based on the individual’s vaccine status or whether an individual has an immunity passport. The Act does not prohibit an employer from recommending that an individual receive a vaccine. However, any Montana employer that is currently offering vaccine incentives or considering doing so should seek legal advice to understand the risks in doing so.
Montana Wage Protection Act (WPA)
Previously, Montana allowed only voluntary tip-pooling. With amendments to the WPA, Montana employers generally may now require tip pooling but must adhere to the following:
- An employer must notify employees of any mandatory tip-pooling arrangement.
- A tip-pooling arrangement may include employees involved in providing customer service or food preparation, including servers, hosts, cooks, bussers, and dishwashers. Employers and exempt salaried supervisors or managers cannot participate in a tip pool but may keep tips they receive directly from customers based on service they directly provided to the customers.
- An employer that collects and redistributes tips must fully distribute any tips collected no later than the next regular payday for the workweek in which the tips were collected.
- There are no contribution limits for a mandatory tip pool, provided an employer does not require employees to contribute more than the tips they actually received.
- An employer must maintain payroll and other records showing tips received and distributed under the tip-pooling arrangement.
Montana Legalizes Recreational Marijuana
Effective January 1, 2021, the recreational use of marijuana by adults aged 21 and over is legal in Montana under the Marijuana Regulation and Taxation Act (the Act). The Act affects employers in that it does not:
- Require an employer to permit or accommodate recreational use of marijuana in any workplace or on the employer's property;
- Prohibit an employer from disciplining an employee for violation of a workplace drug policy or for working while under the influence of marijuana; or
- Prevent an employer from refusing to hire an individual or discharging, disciplining, or otherwise taking an adverse employment action against an individual with respect to hiring, tenure, terms, conditions, or privileges of employment because of the individual's violation of a workplace drug policy or intoxication by marijuana while working.
