Montana’s minimum wage sees a modest rise as the new year begins, benefitting those at the lower end of the pay scale. Effective January 1, the state’s minimum wage increased from $10.55 to $10.85. This adjustment comes from a 2006 law mandating a cost-of-living increase aligned with the national consumer price index from the Bureau of Labor Statistics.
Montana businesses with annual sales of $110,000 or less, not under the federal Fair Labor Standards Act, may pay workers $4 per hour. The state is among 30 states, alongside Washington D.C., Puerto Rico, Guam, and the U.S. Virgin Islands, with a minimum wage above the federal rate of $7.25. Twelve states and D.C. adjust wages annually using specific formulas.
Despite the increase, Montana’s minimum wage remains among the lowest above the federal level, with only West Virginia lower at $8.75. The highest minimum wage is in D.C., at $17.25.
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