New hiring laws in Montana for 2027: the $11.20 minimum wage, new MW-4 withholding, physician non-compete ban and what employers do next

As of November 2026, Montana passed no new hiring laws in 2026, because under Article V, section 6 of the state constitution the Legislature meets in regular session each odd-numbered year; the next one begins in January 2027. What changed this year comes from 2025 laws with delayed dates: since January 1, 2026, a new Form MW-4 and lower income tax brackets apply to payroll, non-competes are void for physicians of every specialty in contracts made or renewed from that date, CPA candidates need only a bachelor's degree, and several health professions moved to new licensing boards. On January 1, 2027 the minimum wage rises from $10.85 to $11.20 an hour and the top income tax rate falls to 5.4%.

Each Montana item below links to the enrolled 2025 session law on the Legislature's archive, which states its effective date, or to the Department of Labor and Industry or the Department of Revenue. The standing checklist (unemployment and withholding registration, the LEGAL Act's verification rule, probation periods, new-hire reporting) is in our Montana hiring hub; this page is the dated list of what is new, plus the federal changes that reach Montana employers.

Which Montana hiring laws changed in 2026, and what changes in 2027?

Montana laws and the federal rules that apply to Montana employers, sorted by date.

What changed in Montana withholding and wages?

The withholding change is the one every 2026 hire touches. The Department of Revenue said in December 2025 that House Bill 337 lowered the highest marginal rate from 5.9% to 5.65% on January 1, 2026, with the 4.7% rate applying to income up to $95,000 for joint filers, $71,250 for heads of household and $47,500 for everyone else. It also rewrote the withholding method to resemble the federal one: employees no longer claim Montana allowances, exemptions or deductions on the form, and the calculation relies on the federal standard deduction for the employee's filing status. The department updated Form MW-4 and recommends a revised form, so make sure onboarding packets carry the 2026 version.

The second step of House Bill 337 (chapter 227) takes effect January 1, 2027: the top rate becomes 5.4%, and the 4.7% bracket covers the first $130,000 for joint filers, $97,500 for heads of household and $65,000 for others. Payroll providers will need the 2027 tables. The Department of Labor and Industry lists the current minimum wage as $10.85 and the rate effective January 1, 2027 as $11.20. Montana allows no tip credit, meal credit or training wage, so the $11.20 applies to tipped staff too; a business not covered by the federal FLSA with gross annual sales of $110,000 or less may pay $4.00, unless the employee is individually covered. Update job ads and offer letters for hourly roles that start in January.

Which Montana non-compete and licensing rules changed on January 1, 2026?

House Bill 620 (chapter 698) extends MCA 28-2-724 to physicians of all specialties for contracts "made or renewed on or after January 1, 2026." Such a contract may not restrict the physician's right to practice in any geographic area for any period after the relationship ends, or to treat, advise or solicit the employer's current patients. The same section already covered several behavioral health licensees, and a 2025 amendment added others; the full list, and how to screen a candidate whose contract predates the change, are in Montana non-compete law. Ask physician candidates for the date their current contract was signed or last renewed.

• CPAs. Senate Bill 166 (chapter 346) rewrote MCA 37-50-305: an applicant for initial licensure must have a baccalaureate degree and the accounting and business credits the board sets by rule, with no 150-semester-hour requirement.
• Therapy and rehabilitation licenses. House Bill 438 (chapter 285) created a board of physical, rehabilitative and developmental health care professionals whose members include athletic trainers, occupational therapists, physical therapists, speech-language pathologists and an audiologist.
• Lab, imaging and respiratory licenses. House Bill 502 (chapter 310) created a board of allied health care professionals for clinical laboratory scientists, radiologic technologists and respiratory therapists.
• EMTs and paramedics. Senate Bill 518 (chapter 415) transferred licensing oversight for emergency care providers from the Board of Medical Examiners to the Department of Labor and Industry.

For recruiters, the board changes mostly affect where you look a license up and who issues it, so update verification steps for these roles; the official tools are in professional license verification for recruiters.

Which federal changes apply to Montana employers in 2026 and 2027?

Montana's own verification rule makes the federal changes matter here. The LEGAL Act, which the Department of Labor and Industry began enforcing on July 1, 2025, requires every employer to verify work authorization using Form I-9 documentation or E-Verify before a new employee begins work, and allows audits through random selection and complaints; the detail is in E-Verify requirements in Montana.

• Form I-9. USCIS lists the 01/20/25 edition as current and allows the 08/01/23 edition until its 05/31/2027 expiration date; electronic systems had to move to the 05/31/2027 version by July 31, 2026.
• Work permits. The DHS final rule of October 14, 2026 finalizes the October 30, 2025 interim rule ending automatic extensions for EAD renewals in certain categories; see the EAD automatic extension guide.
• E-Verify. For employers that verify through E-Verify, the Status Change Report has flagged cases tied to invalidated A12, C08, C09 and C19 EADs since August 11, 2026, and the Historical Records Report for cases last updated on or before December 31, 2016 must be downloaded by January 8, 2027.
• Federal contractors. The Labor Department's final rule rescinded the Executive Order 11246 regulations effective October 26, 2026; what remains is in job posting requirements for federal contractors.
• Criminal history. The EEOC rescinded its 2012 arrest and conviction records guidance on October 28, 2026 (EEOC release). Title VII still applies, and a job-related review using the Green factors from the 1975 Eighth Circuit case (the nature and gravity of the offense, the time since it and the nature of the job) is still sound. Montana's seven-year reporting limit for screening companies is unchanged; see Montana background check laws.

What did not change in Montana?

• No pay range or salary history law; see Montana pay transparency and the Montana salary history page.
• No ban-the-box law for public or private employers; see ban the box in Montana.
• Recording interviews. Montana still bars recording a conversation with a hidden device without all parties' knowledge unless they are warned, so announce recording at the start; see Montana recording consent for interviews.
• Drug testing still runs through the Workforce Drug and Alcohol Testing Act; see Montana drug testing laws.
• Good-cause discharge. Montana's probation and wrongful discharge rules, which shape how offers describe a probationary period, are unchanged and set out in the hiring hub.

What should Montana employers do before January 1, 2027?

1. Raise hourly pay to at least $11.20 from January 1, 2027, including for tipped staff, and update job ads that state a rate.
2. Collect the current Form MW-4 from new hires and confirm your payroll system has the 2027 tables.
3. Remove non-compete and patient non-solicit terms from physician contracts made or renewed since January 1, 2026.
4. Update license verification steps for therapy, lab, imaging, respiratory and EMS roles under the new boards and the department.
5. Keep LEGAL Act records ready for an audit: an E-Verify result or a completed Form I-9 with document copies for each hire, and download any pre-2017 E-Verify records by January 8, 2027.
6. Remove references to the 2012 EEOC guidance from criminal history procedures.

What does this mean for staffing agencies in Montana?

Agencies employing temporary workers in Montana carry the LEGAL Act duty for their own hires, so their I-9 or E-Verify files are what a Department of Labor and Industry audit would examine, and the 2027 minimum wage and withholding tables apply to every assignment. Health care agencies placing physicians should check renewal dates on client contracts that include restrictive covenants. Montana has no general staffing agency license, but PEOs need one; see our Montana staffing agency guide and employer of record in Montana. Other states' changes are in new hiring laws for 2027, and bills from Montana's January 2027 session will only count once enacted.