Montana Paycheck Laws

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 What Are Payday Requirements?

When workers must be provided with a paycheck varies by state in the United States. The majority of states have a law that governs the subject.

These laws outline the frequency with which an employee must be paid, including:

  • Weekly;
  • Biweekly;
  • Semimonthly; or
  • Monthly.

It is important not to confuse the terms biweekly and semimonthly, as they are different pay periods. A worker who is paid on a biweekly basis is paid every 2 weeks.

A worker who is paid semimonthly is paid twice a month, for example on the 15th and last day of the month. A worker paid biweekly typically receives 26 paychecks each year while a worker paid semimonthly receives 24 paychecks each year.

The frequency of paydays is not prescribed by law in every state. For example, Alabama and South Carolina only require that employers with more than five employees give written notice to employees about pay periods.

There are also different pay periods for different types of workers in certain states. The majority of states also require that an employee provide employees with notice of the pay period for their occupation.

It is important to note that if a worker is classified as an independent contractor, they are not covered by paycheck laws. The frequency with which these workers are paid is typically outlined in a written contract between the contractor and the employer.

What Does Withholding Salary Entail in an Employment Setting?

Withholding of a worker’s salary occurs when their employer fails to pay them the wages or salary they promised to pay for the work that was done by the employee. For example, an employer may not issue a paycheck at all or they may fail to pay the full amount of wages the employee earned for their time worked.

Another way an employer may withhold pay is by making an illegal deduction from a paycheck that causes the workers wages to fall below the minimum wage. For instance, the employer may deduct the cost of uniforms that the employer requires the employee to wear while they work.

An employer may withhold pay from an employee by failing to issue their overtime pay to which they are entitled according to federal law. It is important for an employee to understand their rights regarding the payments of wages or salaries under federal, state, and city laws.

Paycheck Laws of Montana

There is a comprehensive federal law in the United States that determines regulations for how and when employees get paid which is applicable to all U.S. citizens. As noted above, states are permitted to make additional laws to supplement these laws.

So long as the state laws comply with federal laws, the state can create tighter regulations or more rules regarding employment compensation. Montana payroll laws provide that the minimum wage in the state as of January 1, 2022 is $9.20 per hour.

Montana allows small employers that have gross annual sales of $110,000 or less to pay their employees $4.00 per hour. Small employers, however, may only pay this rate if their employees are exempt from federal wage laws.

When Must Paychecks Be Sent Out in Montana?

Montana state law does not outline specifically when employers are required to pay their employees. However, Montana labor laws provide that if the employer does not specify the pay schedule, it is assumed that all paychecks will be distributed twice a month.

Following the end of a pay period, all paychecks must be sent out within 10 days. But, if an employee has a timecard and fails to send the timecard in, then the employee’s wages for the missed pay period will be added to the next pay period.

Certain states may have specific procedures specified in the state laws that employees may follow in the event that they do not receive their paychecks on time.

The general procedure in the U.S. is as follows:

  • A worker should first contact their employer and ask when they can expect to receive their paycheck. It is recommended that the employee ask in writing for the paycheck and keep a copy of the request;
  • If an employer does not pay a worker after the worker has requested their pay, the worker may need to file a claim for the unpaid wages with their state department of labor;
  • Beyond this, if still unpaid, a worker may have to file a claim in small claims court; and
  • For larger amounts of money, a worker may consider hiring an employment attorney to help them file a lawsuit.

Montana laws provide a penalty for the failure to pay wages when due in an amount of up to 110 percent of the wages not paid as specified in the Montana Code Annotated.

What Happens if You Are Fired in Montana?

Montana final paycheck laws require that employees who are fired must be paid owed wages on the same day. The law provides that the payment must be sent within 4 hours of the termination or by the end of business that day.

An employer, however, may bypass this regulation if they have a different written agreement with the employee in place ahead of time. If a Montana employee quits, they will be paid on the next scheduled payday in the pay period, which must occur within 15 calendar days.

An employer who operates in the private sector is not required to pay out sick leave or vacation time to former employees. There are no laws regarding how to pay employees who resign as a result of labor disputes.

However, employers tend to pay wages as owed on a twice a month basis or within 15 days of resigning, whichever occurs first.

Can Your Paycheck Be Garnished?

When an individual is behind on their child support, payments on a civil settlement or unpaid taxes, a court determines if their paycheck can be garnished. The party that is owed money must file a claim in court.

Because paycheck garnishment can only occur based on a formal judicial order, it is not up to an individual employee. A paycheck cannot be garnished for lost or damaged work items.

If, however, an employee is terminated because of theft of work property that is suspected by the employer, the employer may withhold an amount from the worker’s final paycheck to cover the costs of the stolen property.

This only applies if the employee consents to the amount being withheld or if the employer files a report with local law enforcement within 7 days of the employee’s termination. If law enforcement does not charge the employee with theft within 15 days, the employer will be required to pay back all wages they withheld due to the theft.

Can You Recover a Withheld Paycheck in Montana?

If a worker’s paycheck is withheld after they have quit or been terminated, they can speak with a local Montana employment lawyer to determine what their options are. They may want to file a claim in court or file a wage claim.

Where Can You Find the Right Lawyer?

If you believe your paycheck was improperly withheld or deducted, it is important to consult with a Montana employment lawyer as soon as possible. Your lawyer can advise you of your rights under Montana employment laws as well as what your options are for recovery.

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