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Montana Sick Leave: How the $4 Small-Business Wage Works
Montana's legislature has not passed a paid sick leave mandate for private employers. Montana's minimum wage of $10.85 an hour is adjusted annually by formula, but the state also carves out a $4.00 rate for non-FLSA businesses with gross annual sales of $110,000 or less, a small-business exception few other states run. Sick leave accrual, carryover and payout are entirely a matter of the employer's written policy.
Montana at a glance
| Paid sick leave mandate | None statewide for private employers |
|---|---|
| Governing rule | Your written policy, enforced as written |
| State paid family and medical leave | None. Federal FMLA only, unpaid, at 50+ employees |
| Minimum wage | $10.85 |
| Overtime | Weekly over 40 |
| Coverage below the 20-employee COBRA line | None. No state obligation under 20 employees |
Size and tenure decide who FMLA even reaches
Montana has no paid family and medical leave law of its own, leaving federal FMLA as the only job-protected leave, and FMLA pays nothing while the leave runs. The rule is entirely about size and tenure: 50 or more employees within 75 miles, 12 months of service, and 1,250 hours actually worked in that period. Montana's economy leans heavily on small employers, so the 50-employee gate excludes a meaningful share of the state's workforce before tenure is even considered. See the U.S. Department of Labor's FMLA overview.
No fixed-duration continuation law, but a conversion right
Where most neighboring states hand out a fixed number of continuation months, Montana hands out a right to convert instead. Mont. Code Ann. section 33-22-508 lets an insured with at least 3 months of coverage switch to an individual or group conversion policy, no medical underwriting required, but only if the paperwork goes in within 31 days of termination. Narrower continuation rights sit alongside it for dependents, for people with disabilities, and after a reduced work schedule, under sections 33-22-503, 33-22-506 and 33-22-507. See the Montana Code, Title 33, Chapter 22, Part 5.
South Dakota shares the no-mandate rule at a higher wage
Montana's southeastern corner touches South Dakota, another state with no paid sick leave mandate and no state paid family leave program, but a higher minimum wage at $11.85 an hour against Montana's $10.85, and the same annual formula adjustment on both sides of the line. Neither state fills the sick leave gap, so a company with employees in both still needs one documented policy rather than an assumption that the absence of a mandate means the topic can be skipped entirely.
Where a Montana employer gets this wrong is assuming Mont. Code Ann. 33-22-508's conversion right works like a fixed continuation period elsewhere. It does not: there is no maximum number of months, only a 31-day window to apply, after which the right disappears permanently, a materially different risk than a missed deadline in a state running an 18-month or 12-month clock instead.
In summary: Montana runs a $10.85 wage floor with a $4.00 small-business exception, a 31-day conversion right under Mont. Code Ann. 33-22-508, and FMLA's 50-employee, 12-month, 1,250-hour gate underneath all of it.
FMLA, remote-hire exposure and voluntary policy drafting: paid leave fundamentals.
For Montana specifically: nothing above is statutory in Montana, so your written policy is the enforceable rule, the wage floor those hours are paid at is $10.85, and below the federal 20-employee COBRA threshold there is no Montana continuation requirement at all. HR outsourcing in Montana keeps that in the handbook and in payroll.
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Frequently Asked Questions
Does Montana require paid sick leave?
No. Montana has no statewide requirement for private employers, so whatever your handbook says is the enforceable rule, including on carryover and payout. Hours you do pay are paid at $10.85.
What pay rate applies to leave hours in Montana?
Minimum wage in Montana is $10.85. Overtime: Weekly over 40. Paid leave hours generally do not count toward the overtime threshold because they are not hours worked.
Does health coverage continue after separation in Montana?
Only federal COBRA, at 20 or more employees. Montana has no state continuation law, so a smaller employer owes nothing after separation unless the handbook promises it.
Does Montana run a paid family and medical leave programme?
No. Federal FMLA is the only family and medical leave floor in Montana: 12 workweeks, unpaid, at employers with 50 or more employees.
Does Montana’s 31-day conversion window start on the termination date or the notice date?
The termination date. Mont. Code Ann. 33-22-508 counts from when group eligibility actually ends, so a delayed notice from the employer does not extend the 31 days.
Is this a PEO?
No. No co-employment and no employer-of-record change: your company stays the employer. HR outsourcing, powered by isolved.
Anthony leads HR outsourcing strategy at Business Executive Group, a national HR outsourcing firm serving employers across every state. BEG HR outsourcing is powered by isolved, with certified HR professionals building and maintaining state-correct leave policy, handbooks, and hiring paperwork, alongside talent acquisition and direct hire support.
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