Montana Payroll Rules

Frequency of Payments

Montana does not have any laws dictating how often to pay your employees. However, you must pay your employees within 10 days after the end of the pay period.

Manner of Payments

You may pay your employees by cash or check. If you have written or electronic consent (and keep the electronic consent), then you may pay an employee via direct deposit.

Payment Upon Separation

If you discharge an employee for any reason, you must pay them immediately.

If an employee quits or resigns voluntarily, you must pay them by the next regular payday or within 15 days, whichever is sooner.

Deductions

You cannot make the following deductions from an employee’s paycheck:

• cash shortages,
• lost or stolen property,
• damage to property, or
• any other claimed indebtedness to the employer.

If you discharge an employee due to an allegation of theft of your property connected to the employee’s work, you may withhold a sufficient amount to cover the value of the theft from the employee’s final paycheck if

• the employee consents in writing, or
• you file a report of the theft with local law enforcement within seven (7) days of the discharge.

Uniforms & Other Required Equipment or Tools

Montana does not have any laws about whether you can require an employee to purchase a uniform or equipment necessary for them to do their job.

Pre-Hire Medical, Physical, & Drug Tests

You cannot require an employee or applicant to pay for the cost of any pre-hire exams.

Notice of Wage Reduction

If an employee requests so in writing, you must notify them of their rate of pay before they begin the work. The notification must be in writing or be posted in a conspicuous place.

Paystubs

For each employee, you must provide them with an itemized statement of all deductions and withholdings on each payday.

Recordkeeping

For each employee, you must keep the following records for at least three (3) years:

• full name and any identifying symbol or number used in place of name on any time, work, or payroll records;
• home address;
• date of birth;
• sex and occupation;
• time of day and day of week on which the employee’s workweek begins;
• regular hourly rate of pay and length of pay period;
• hours worked each workday and total hours worked each workweek;
• total daily or weekly straight-time earnings;
• total weekly overtime compensation;
• total additions to or deductions from wages paid each pay period;
• a record of dates, amounts, and nature of any additions to or deductions from wages paid each pay period;
• total wages paid each pay period; and
• date of each payday and the pay period covered each payday.

Notices

If an employee requests so in writing, you must notify them, before they begin working of their rate of wages (whether hourly, daily, weekly, monthly, or annually) and the date of paydays. The notification must be in writing or be posted in a conspicuous place.