Federal & State Regulations | Time off - Montana | J. J. Keller® Compliance Network

State Info

Summary of differences between federal and state regulations

The federal Fair Labor Standards Act does not require payment for time not worked, nor does it regulate vacation pay, holiday pay, or other paid time off. These types of benefits are generally a matter of agreement between an employer and an employee (or the employee’s representative). Employers, however, do need to comply with applicable state laws.

Criminal justice proceeding

Under Montana law, employers may not discharge or discipline a victim or a member of the victim's family for participation at the prosecuting attorney's request in preparation for or attendance at a criminal justice proceeding.

"Member of the victim's family" means the victim's spouse, child by birth or adoption, stepchild, parent, stepparent, or sibling, but does not include a person who is accountable for the crime or accountable for a crime arising from the same transaction.

Jury duty

Montana doesn’t require private employers to pay employees on jury duty.

Montana law requires state employees to be paid for jury duty. However, the employee must turn over all fees and allowances payable as a result of the duty and forward them the state.

Paid time off (PTO)

Montana law does not require vacation pay. However, if an employer chooses to provide paid time off benefits, it must follow the terms and conditions established in its policy.

When an employee separates employment for any reason, an employer must pay out all accrued or earned vacation upon separation.

Voting

Montana doesn’t have a time-off-for-voting provision.

Montana has no state requirement that private sector employers provide vacation pay. However, if provided, once vacation has been earned according to the employer’s policy, it is then considered wages and is due and payable in the same manner as regular wages. So called ‘use it or lose it’ policies are not permitted in Montana. However, caps, or maximum accumulation amounts can be instituted which prevent additional vacation accrual until existing time is used.

Private sector employers are not required to pay out severance pay, sick leave or paid time off. These are considered benefits and may be paid based on the employer’s policies. In the case of PTO there is no Montana case law indicating if PTO must be paid on separation. The Department of Labor and Industry takes the position that PTO is not payable except for those parts of PTO clearly identifiable as earned vacation time.