As the new year begins, Montanans earning minimum wage will see a slight increase as the state’s mandated minimum wage adjustment takes effect. Starting January 1st, Montana’s minimum wage rose from $10.55 to $10.85. This change is part of a 2006 law requiring adjustments based on the consumer price index.
Montana law permits businesses not covered by the federal Fair Labor Standards Act, and with annual sales of $110,000 or less, to pay workers $4 per hour. Currently, Montana is among 30 U.S. states, including Washington D.C., Puerto Rico, Guam, and the U.S. Virgin Islands, that maintain a minimum wage above the federal rate of $7.25.
Twelve states, as well as D.C., adjust their minimum wages annually using predetermined formulas. While Montana’s minimum wage remains one of the lowest above federal levels, only West Virginia has a lower state rate at $8.75. In contrast, the highest state wage is D.C.’s $17.25.
