Montana's minimum wage increases to $8.75

Montana’s minimum wage will increase from $8.65 to $8.75 per hour on January 1, 2021. The increase applies to every Montana employer, except for farmers and ranchers that pay employees on a fixed rate of compensation.

Who’s affected

On October 9, 2020, Governor Steve Bullock announced the minimum wage increase to $8.75 per hour. According to the governor’s office, the raise will affect the estimated 8,000 to 10,000 Montana workers currently receiving a smaller hourly wage.

The accommodations and food services industries are the most affected as the most workers earning minimum wage. Governor Bullock also pointed out “many of these minimum-wage workers are front-line workers who are at the greatest risk of COVID-19 exposure.”

How we got here

In 2006, as a private citizen, Governor Bullock led ballot initiative I-156, which requires the Montana Department of Labor and Industry (DOLI) to adjust the minimum wage each year to account for changes in inflation as reflected in the consumer price index for urban consumers (CPI-U). The ballot initiative passed and became law on November 7, 2006.

The CPI-U climbed by 1.31 percent from August 2019 to August 2020, which equates to an 11-cent per hour increase. Since state law requires the minimum wage to be rounded to the nearest 5 cents, the bump will be 10 cents per hour to $8.75.

History of Montana and federal minimum wages