Montana labor laws, along with federal rules under the Fair Labor Standards Act (FLSA), set clear standards for calculating overtime pay in Montana.
This article will cover key aspects of Montana’s overtime laws, how to define a workweek, who qualifies for overtime, and how to calculate it for different types of employees, including those with multiple pay rates, piece rates, and flat rates.
This Article Covers:
Understanding Overtime in Montana
- Which Overtime Laws Apply in Montana?
- What is the Regular Rate of Pay in Montana?
- How Do You Define a Workweek in Montana?
- How Much is Overtime Pay in Montana?
- Who is Eligible for Overtime Pay in Montana?
- Who is Exempt from Overtime Pay in Montana?
- Can Employers Mandate Overtime Work in Montana?
Overtime for Hourly Rate, Two or More Hourly Rates, and Salaried Employees in Montana
- How Do You Calculate Overtime for Hourly Employees in Montana?
- How Do You Calculate Overtime for Employees with Two or More Hourly Rates in Montana?
- How Do You Calculate Overtime for Salaried Employees in Montana?
Overtime for Complex Pay Structures in Montana
- How Do You Calculate Overtime Pay for Piece Rate Employees in Montana?
- How Do You Calculate Overtime for Flat Rate Employees in Montana?
Additional Considerations for Montana Overtime
- Can an Employee Choose Compensatory Time Instead of Overtime in Montana?
- Does Montana Include Paid Time Off in Overtime Calculations?
- Are Montana Employers Required to Keep Overtime Records?
Understanding Overtime in Montana
Which Overtime Laws Apply in Montana?
A combination of Montana overtime laws and the federal Fair Labor Standards Standards Act (FLSA) apply in Montana.
Under these statutes, most employees must be paid overtime — 1.5 times their regular hourly rate — for any hours worked over 40 in a workweek, unless they are specifically exempt under Montana law.
What is the Regular Rate of Pay in Montana?
The “regular rate” in Montana refers to the employee’s average pay and must be at least the minimum wage. It includes all types of payments the employer gives directly to the employee or pays on their behalf. This can cover commissions, monthly salaries, hourly wages, and similar earnings.
Typically, if the employee doesn’t receive any other type of pay, the regular rate of pay for a 40-hour workweek can be calculated as follows:
Regular rate for the workweek = Total compensation in the workweek (except for statutory exclusions) ÷ Total hours worked in the workweek
How Do You Define a Workweek in Montana?
In Montana, a workweek is a fixed period of 168 hours — that’s seven straight days, made up of 24 hours each.
The employer can choose when the workweek starts, and it can begin on any day and at any hour. However, once set, it must stay consistent unless officially changed following the rules.
How Much is Overtime Pay in Montana?
In Montana, overtime pay is 1.5 times an employee’s regular hourly rate. This applies to any hours worked over 40 hours in a single workweek.
Given Montana’s current minimum wage of $10.55, this would put the minimum overtime pay at $15.83 per overtime hour.
Who is Eligible for Overtime Pay in Montana?
In Montana, most employees are eligible for overtime pay under state law.
Salaried employees can also be eligible for overtime pay in Montana if they fall within the specified salary threshold set by the FLSA.
Who is Exempt from Overtime Pay in Montana?
Certain employees are exempt from overtime pay under the Montana statutes. These exemptions include:
- Transportation workers regulated by the U.S. Secretary of Transportation and employees of interstate commerce companies
- Outside buyers of raw poultry, eggs, cream, or milk.
- Salespersons in the business of selling vehicles, trailers, boats, aircraft, or advertising for radio/TV stations, if paid on a commission or contract basis.
- Agricultural workers, including those working with irrigation systems or farming livestock, provided certain conditions are met (such as small operations or a specific wage rate).
- Drivers and helpers making local deliveries on a commission or trip-rate basis, provided the pay plan reduces hours to meet the maximum workweek limits.
- Workers at small establishments, such as country elevators or businesses with fewer than five employees.
- Employees of public safety, law enforcement, and fire departments working under specific collective bargaining agreements or established work periods.
- Employees in agriculture related to forestry or logging operations with fewer than eight employees.
- Healthcare workers in hospitals or similar facilities working under certain work periods, generally not exceeding 80 hours in 14 days, with overtime for hours over 80.
- Employees of air carriers, subject to certain federal regulations, if hours worked beyond 40 in a workweek are voluntary
Other overtime exemptions in Montana under the FLSA include:
- Aircraft salespeople
- Airline employees
- Amusement/recreational employees in national parks/forests/Wildlife Refuge System
- Announcers, news editors, and chief engineers at major radio or TV stations
- Babysitters on a casual basis
- Boat salespeople
- Buyers of agricultural products (poultry, egg, milk, etc.)
- Companions for the elderly
- Country elevator workers (rural)
- Criminal investigators receiving availability pay
- Domestic employees who live in
- Domestic workers
- Employees in national parks, amusement, or recreation facilities
- Farm implement salespeople
- Federal criminal investigators
- Firefighters working in small (less than 5 firefighters) public fire departments
- Fishing industry workers
- Forestry employees of small (less than 9 employees) firms
- Fruit & vegetable transportation employees
- Government employees
- Highly compensated employees earning at least $107,432 per year
- Homeworkers making wreaths
- House parents in non-profit educational institutions
- Independent contractors (under specific conditions)
- IT personnel earning at least $27.63 per hour
- Livestock auction workers
- Local delivery drivers and driver’s helpers
- Lumber operations employees of small (less than 9 employees) firms
- Motion picture theater employees
- Newspaper delivery workers
- Newspaper employees of limited circulation newspapers
- Police officers working in small (less than 5 officers) public police departments
- Radio station employees in small markets
- Railroad employees
- Seamen on American vessels
- Seamen on other than American vessels
- Sugar processing employees
- Switchboard operators
- Taxicab drivers
- Television station employees in small markets
- Truck and trailer salespeople
- Volunteers in religious, non-profit, charitable, or educational organizations
- Workers in maple syrup production
- Youth employed as actors or performers
- Youth employed by their parents
Can Employers Mandate Overtime Work in Montana?
Yes, employers in Montana can mandate overtime work.
Employers have the authority to require employees to work beyond their scheduled shifts. If an employee refuses to perform the overtime work assigned by the employer, the employer may take disciplinary action, including termination, in accordance with company policies and applicable labor laws.
Overtime for Hourly Rate, Two or More Hourly Rates, and Salaried Employees in Montana
How Do You Calculate Overtime for Hourly Employees in Montana?
To understand overtime calculations for hourly employees in Montana, take the following example.
Josie is an hourly employee and earns $12.00 per hour. She has worked 46 hours in a specific week and is eligible to earn overtime pay. To determine her overtime wages, we can use the following steps:
Since Josie earns $12.00 per hour, that would automatically be her regular rate of pay. |
Multiply the regular pay rate by 1.5. Josie’s overtime rate would then be: ($12.00 x 1.5 = $18.00) |
If Josie worked 46 hours in a week, her overtime hours would be six: (46 hours – 40 hours = 6 hours). |
Multiply the overtime hours by the overtime rate. From the example, Josie’s overtime pay would be a total of: (6 hours x $18.00 = $108.00). |
It’s important to note that the regular rate can change if the employee gets extra compensation or incentives during the week.
Learn more about hourly employee rights in Montana.
How Do You Calculate Overtime for Employees with Two or More Hourly Rates in Montana?
To calculate the regular rate for an employee in Montana who has two or more hourly rates, add up their total earnings for the week and divide by the total hours worked.
For example, if an employee earns $540 in a week from two different hourly jobs and works 45 hours, here’s how you calculate their overtime pay:
Divide weekly earnings by the total hours worked. ($540 ÷ 45 = $12.00 per hour). |
Multiply the regular pay rate by 1.5 to get the overtime rate. Here, the regular rate is $12.00, the overtime rate would be: ($12.00 x 1.5 = $18.00). |
As the employee worked 45 hours, their overtime hours would be five (45 hours – 40 hours = 5 overtime hours). |
Multiply the overtime rate by the overtime hours. In this example, the overtime pay would be ($18.00 x 5 hours = $90.00). |
How Do You Calculate Overtime for Salaried Employees in Montana?
To calculate the regular hourly rate for a salaried employee in Montana, divide their weekly salary by the number of weekly hours it covers.
For example, if an employee earns $420 for a 35-hour week, their regular rate is $12.00. Overtime pay is 1.5 times this rate for hours over 40.
For salaries covering longer periods, it’s best to convert them to a weekly equivalent. You can do so by using the following formulas:
For Monthly Salary:
(Monthly Salary x 12) ÷ 52
For Semimonthly Salary:
(Semimonthly Salary x 24) ÷ 52
For example, a monthly salary of $2,080 (or a semimonthly salary of $1,040) for a 40-hour workweek equals an hourly rate of $12.00 per hour.
Employers can also calculate the hourly rate by dividing the monthly salary by the number of workdays in the month and then by the hours in a typical workday. However, this rate must meet or exceed the minimum wage.
Learn more about salaried employee rights in Montana.
Overtime for Complex Pay Structures in Montana
How Do You Calculate Overtime Pay for Piece Rate Employees in Montana?
In Montana, if an employee is paid by the piece instead of by the hour, their regular hourly rate is found by adding up all their earnings for the week—including piece work, bonuses, and waiting time pay—and dividing that total by the number of hours they worked.
If they work more than 40 hours in a week, they must be paid extra for overtime. For each overtime hour, they get an additional half of their regular hourly rate.
For example, if an employee works 52 hours and earns $780 from piece work, their regular hourly rate would be $15.00 ($780 ÷ 52).
For the 10 overtime hours, they get an extra $7.50 per hour, adding $75.00 to their total pay. Their final weekly earnings would then be:
Total Regular Earnings + Overtime Pay = $855.00.
How Do You Calculate Overtime for Flat Rate Employees in Montana?
In Montana, a flat rate employee is paid a set amount to complete a specific task, no matter how long it takes. An hourly employee, on the other hand, is paid for each hour they work.
For example, suppose an employee earns $15.00 per hour for regular work and $22.50 per hour for overtime. If they also earn a flat rate of $50.00 for a special task done outside of regular hours, that $50.00 must be included when calculating their total pay.
If the employee works 47 hours in one week, their total earnings would be:
Total Earnings =($15.00 x 40 Regular Working Hours) + ($22.50 x 7 Overtime Hours) + $50.00 Flat Rate for Special Task
Total Earnings = $807.50
Next, get the employee’s regular rate of pay by dividing the total weekly earnings by total weekly work hours.
Regular Rate of Pay = $807.50 / 47 = $17.18
To calculate overtime pay, the extra half-time rate is determined by dividing $17.18 by two, equaling $8.59 per overtime hour. Since the employee worked seven overtime hours, they are owed an additional $60.13.
Additional Considerations for Montana Overtime
Can an Employee Choose Compensatory Time Instead of Overtime in Montana?
Yes, nonexempt employees working in public agencies in Montana may choose to receive compensatory time off instead of overtime pay. However, there must be a written agreement between the employer and the employee before compensatory time can be used.
Compensatory time is earned at one and one-half times the employee’s regular hourly rate for any hours worked over 40 in a week.
Employees can accumulate up to 90 hours of compensatory time (which equals 60 hours of overtime worked). Once the maximum balance is reached, additional overtime must be paid in cash until some compensatory time is used.
Does Montana Include Paid Time Off in Overtime Calculations?
No, paid sick leave, holiday pay, and vacation time are not included when calculating overtime in Montana. Overtime is based only on the actual hours worked during the workweek.
Even if the total of work hours plus paid time off exceeds 40 hours, overtime pay is only required if the employee physically worked more than 40 hours.
Employers may offer holiday pay or other benefits at their discretion, but these do not count toward overtime unless specifically stated in a contract or workplace policy.
Are Montana Employers Required to Keep Overtime Records?
Yes, Montana employers are required to keep detailed records of employee work hours and overtime. These records are necessary to comply with state regulations and the Montana Minimum Wage Law.
Employers must record overtime information such as:
- Hours worked each day and total hours worked each week
- Total straight-time earnings and total overtime compensation
- Any additions to or deductions from wages
There is no specific format required for these records, but the information must be complete and accurate for every employee.
Important Cautionary Note
This content is provided for informational purposes only. While we make every effort to ensure the accuracy of the information presented, we cannot guarantee that it is free of errors or omissions. Users are advised to independently verify any critical information and should not solely rely on the content provided.
