A Montana employment contract is a document that outlines a working relationship between an employer and an employee. It states key information such as the period of employment, the responsibilities expected of the employee, the financial compensation the employer will pay, and any benefits the employee will receive.
To be valid in Montana, an employment contract must meet elements of common law, including an offer, acceptance, and consideration. As long as both parties can prove there was mutual agreement, the contract can be oral instead of written [1] .
- Laws: Title 39
- Definition of Employee: MT Code § 39-71-118 An employee is any individual, except for independent contractors, who are in the service of an employer under a contract of hire or an appointment.
By Type
Independent Contractor Agreement
Explains the agreement between an independent contractor and a client.
Subcontractor Agreement
Establishes a working relationship between an independent contractor and a subcontractor.
Employee Non-Compete Agreement
Prevents competition by prohibiting an employee from engaging in certain activities.
Employee Non-Disclosure Agreement
Safeguards proprietary technology and processes.
Hiring in Montana
Before you write a Montana employment contract, make sure you know how the state handles specific employment elements:
At-Will Employment
Montana is an at-will employment state, meaning that an employer can end an individual’s employment for any reason. There are also exceptions to the at-will employment rules.
Exceptions
- Public Policy: Yes
- Implied Contract: No
- Good-Faith Exception: Yes
Minimum Wage ($/hour)
The minimum wage in Montana depends on the size of the business [2] .
Businesses with gross annual sales of more than $110,000 have a basic minimum rate of $9.95/hour. Businesses with gross annual sales of $110,000 or less (and not covered by the Fair Labor Standards Act) can pay $4.00/hr.
If an individual employee is producing or moving goods between states or otherwise covered by the federal Fair Labor Standards Act, the employee must be paid the greater amount of either the federal minimum wage or Montana’s minimum wage.
Child Labor
In Montana, employment certificates are not required.
Age certification is required in Montana for minors 16 and over who are working in hazardous occupations. For other occupations, it must be provided on request.
Children under 14 years old can only perform specific jobs, like completing non-hazardous agricultural work and collecting newspapers [3] .
Payday
The pay period in Montana is presumed to be semi-monthly in length if there is not an established time period or time when wages are due and payable.
Meal and Rest Breaks
There are no requirements for minimum periods for breaks or meals in Montana.
Recordkeeping Requirements
Here are the requirements for employer recordkeeping in Montana:
- Unemployment Insurance: 5 years
- Safety and Health/Workers’ Compensation: Indefinitely
- Proof of Employment: 3 years
Sample
Download a Montana employment contract template in PDF or Word format below.
