Montana minimum wage will increase to $8.30 on January 1

Montana Governor Steve Bullock announced on September 29, 2017, that Montanans earning minimum wage will see the rate increase to $8.30 per hour beginning January 1, 2018.
The current minimum wage rate is $8.15 per hour. Section 39-3-409 of the Montana Code requires the Department of Labor and Industry to adjust the Montana minimum wage for inflation as measured by the Consumer Price Index (CPI-U) from August of the preceding year to August of the year in which the calculation is made. An adjustment to the minimum wage is to be made no later than September 30 of each year based upon any increase in the CPI, rounded to the nearest 5 cents. For the period August 2016 to August 2017, the CPI-U increased by 1.939%. To keep the minimum wage at the same purchasing power as the prior year, the wage should increase by $0.158 per hour ($8.15 x 1.939% = $0.158), rounded to $0.15.
In 2017, the industry with the largest number of workers earning minimum wage was the accommodations and food industry followed by the retail trade industry. Combined Food and Preparation Workers, Waiters and Waitresses, Cashiers, Bartenders, and Retail Salespersons are occupations with large numbers of minimum wage workers. An estimated 3,900 workers, or approximately 0.9 percent of the workforce, receive minimum wage.
A business not covered by the federal Fair Labor Standards Act whose gross annual sales are $110,000 or less may pay $4.00 per hour. However, if an employee is producing or moving goods between states or otherwise covered by the federal FLSA, that employee must be paid the greater of either the federal minimum wage (currently $7.25 per hour) or Montana’s minimum wage. No tip credit, training wage or meal credit is allowed in Montana. (State of Montana, Office of the Governor, News Release, September 29, 2017; Montana Department of Labor and Industry, Commissioner’s Office, News Release, September 29, 2017.)

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