Labor & Employment (Minimum Wage)

This bill modifies Montana's workers' compensation laws by removing the cap that limits benefit payments to the state's average weekly wage. It directly affects employees, volunteers, and specific groups such as volunteer firefighters, inmates in prison industries programs, and individuals performing community service under court orders. The key provision allows injured workers to receive benefits based on their actual wages rather than a fixed state average, while maintaining special rules that limit benefits for certain categories like community service participants to minimum wage levels. The legislation also clarifies coverage definitions for various worker types, including religious organization members and national guard personnel performing state duties.

This bill raises Montana's minimum wage to $12.06 per hour and establishes a cost-of-living adjustment mechanism that automatically updates the rate annually based on changes in the consumer price index. The law applies to most employers but maintains a $4 minimum wage for businesses with annual gross sales of $110,000 or less. The new wage rate and automatic adjustment provisions take effect on July 1, 2025, replacing the previous fixed dollar amount in state law.

HB 484 proposed to increase the state's minimum hourly wage from $6.15 to $12.06, affecting many hourly workers and their employers. The bill maintained the existing mechanism for annual cost-of-living adjustments to the minimum wage. It also retained a lower minimum wage of $4 per hour for businesses with annual gross sales of $110,000 or less. If enacted, these provisions would have become effective on July 1, 2025.