Montana HR Consulting & Employment Law for Small Businesses

Wrongful Discharge from Employment Act (WDEA)

Montana's WDEA provides that after a probationary period (the first 6 months of employment, or longer if the employer defines one in writing), employers may only terminate an employee for 'good cause' -- a legitimate business reason. This is unique nationally. Montana does not recognize true at-will employment for post-probation employees. Wrongful discharge claims can result in damages for lost wages and benefits.

Montana Human Rights Act

The Montana Human Rights Act prohibits discrimination in employment based on race, color, national origin, religion, age, physical or mental disability, sex, and marital status. It applies to all employers with 1 or more employees. The Montana Human Rights Bureau handles complaints.

Montana Minimum Wage

Montana's minimum wage is set above the federal rate and adjusted annually based on the Consumer Price Index. The Department of Labor and Industry publishes the current rate. Montana employers must post the current minimum wage.

Careful Probationary Period Documentation

Because WDEA protection kicks in after the probationary period, Montana employers should clearly define the probationary period in writing (typically 6 months), evaluate employees carefully during that period, and document any performance issues. After probation ends, all terminations need a documented legitimate business reason.

1+ Employees: employees

• Montana minimum wage applies (above federal, adjusted annually)
• WDEA: after probationary period, termination requires 'good cause'
• Montana Human Rights Act anti-discrimination protections

50+ Employees: employees

• Federal FMLA applies
• ACA employer mandate
• COBRA obligations

Is Montana really not an at-will state?

Correct. After an employee completes a probationary period (typically 6 months), Montana's WDEA requires 'good cause' for termination. This is unique in the United States. During the probationary period, employers can terminate freely. Once probation ends, terminations need a legitimate, documented business reason.

How should Montana employers define the probationary period?

Montana employers should clearly define the probationary period in writing -- in the offer letter and employee handbook. The period can exceed 6 months if defined in writing before employment begins. Employers should use the probationary period to carefully evaluate new employees and document any performance concerns.

What counts as 'good cause' for termination in Montana?

Good cause under the WDEA is a legitimate business reason that is not arbitrary, capricious, or motivated by discrimination or retaliation. Performance issues, misconduct, layoffs due to business needs, and policy violations are examples of good cause. Pretextual reasons or personality conflicts do not meet the standard.

Does Montana require paid sick leave or paid family leave?

No. Montana has no statewide paid sick leave or paid family leave mandate for private employers. Federal FMLA provides 12 weeks of unpaid leave for eligible employees at covered employers.

What is the Montana minimum wage?

Montana's minimum wage is above the federal floor and adjusted annually for inflation. The current rate is published by the Montana Department of Labor and Industry. Montana employers must post the current minimum wage rate.

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