U.S. Department of Labor
Wage & Hour Division
&
Montana Department of Labor
Labor Standards Bureau
Disclaimer
This presentation is intended as general information only and does
not carry the force of legal opinion.
Both the U.S. Department of Labor and Montana Department of
Labor are providing this information as a public service. This
information and related materials are presented to give the public
access to information on both the Department of Labors’ programs.
You should be aware that, while we try to keep the information timely
and accurate, there will often be a delay between official
publications of the materials and the modification of these pages.
Therefore, we make no express or implied guarantees. The Federal
Register , the Code of Federal Regulations, Montana Code
Annotated and the Administrative Rules of Montana remain the
official source for regulatory information published by both the
Departments of Labor. We will make every effort to keep this
information current and to correct errors brought to our attention.
CONTACT INFORMATION
Montana Department of Labor & Industry
Employment Relations Division
Labor Standards Bureau
Wage & Hour Unit
PO Box 201503
Helena MT 59620
(406) 444-5600
www.mtwagehourbopa.com
U. S. Department of Labor
Wage & Hour Division
150 East Social Hall, Ste 695
Salt Lake City, UT 84111-1534
(801) 524-5706
http://www.dol.gov/whd/index.htm
Laws Administered By the Wage & Hour Unit
Wage Payment Act
State Minimum Wage
& Overtime Laws
Prevailing Wage
Child Labor
Employment Relationship
Classified vs. Certified Employees
Classified (non-exempt) employees –
Keep record of hours worked – need to be paid
for all hours. If hours exceed 40, overtime as well.
Certified (exempt) employees –
Salary would pay for all hours.
May vary depending on time devoted to
coaching.
For coaching positions only – Need to make
sure compensation plan complies with law.
Stipend vs. Salary
29 CFR Part 541 – Salaried Exemptions
Administrative Employees
541.200
Computer Employees
541.400
Executive Employees
541.100
Professional Employees
541.300
1. District Clerks can be employed
as a bona fide administrative
employee and exempt from
overtime?
It
Depends
2. If a person is hired as office
manager and paid on a salary basis
with main duties consisting of
scheduling employees, bookkeeping
and answering the phone, they do not
need to be paid overtime.
FALSE
Minimum Wage
Montana
$8.05 per hour
Meal Credit,
Training
Wage, or Tip
Credit
Subject to Cost-of-Living
Adjustment
OVERTIME
39-3-405 MCA
Non-exempt employees - Time and one-half for all
hours worked in excess of 40 in the workweek.
Counts for hours worked in all positions.
• Authorized or not – time is still worked to benefit
of employer. 24.16.1005 ARM
• Employer must take steps to control work being
performed.
5. Holiday pay does not have to be
included in the calculation of overtime.
TRUE
39-3-405 MCA
•Overtime is to be paid for actual hours worked in
excess of 40 in the workweek.
Hours worked
•Time off would not be actual hours worked.
20-1-305 MCA
•Definition of School Holidays
Attorney General Opinions
Montana School Board’s Association
15. At the end of the school year,
classified employees can opt to have
their vacation leave paid out or carry
over to the next school year.
TRUE
2-18-617(5) MCA
2-18-617(1) MCA – “Annual leave may be accumulated to a total
not to exceed two times the maximum number of days earned
annually as of the end of the first pay period of the next calendar
year. Excess vacation time is not forfeited if taken within 90 calendar
days from last day of the calendar year in which excess was accrued.”
Allowances given for extensions to the 90 days in order to allow
employee to use excess.
2-18-617(5) MCA – School district can provide cash compensation
for unused vacation leave in lieu of accumulation
through agreement or CBA.
Benefit defined under 2-18-612 MCA
Vacation Requirements:
Classified Staff: Earned based on Title 2
Certified Staff: Earned based on contract or Collective Bargaining
Agreement
Administrative Staff: Earned based on contract
39-3-204 & 39-3-205 MCA –
Payment of Wages
Quit – employee to be paid on the next
scheduled pay day for the period separated or
15 calendar days, whichever occurs first.
Terminated / Laid Off – employee to be paid within 4 hours or
by end of business day unless employer has pre-existing policy
extending the time for payments. Cannot be extended beyond
next scheduled pay day for period separated or 15 calendar days,
whichever occurs first.
Still Employed – employee to be paid within 10 business days
(Monday through Friday) from end of pay period.
7. If an employee advises a school
sponsored club, all hours would be
considered work time.
TRUE
VOLUNTEERS
Code of Federal Regulations, Part 553.100
(a) An individual who performs hours of service for a public agency for civic, charitable,
or humanitarian reasons, without promise, expectation or receipt of compensation
for services rendered, is considered to be a volunteer during such hours. Individuals
performing hours of service for such a public agency will be considered volunteers
for the time so spent and not subject to sections 6, 7, and 11 of the FLSA when
such hours of service are performed in accord with sections 3(e)(4) (A) and (B) of
the FLSA and the guidelines in this subpart.
(c) Individuals shall be considered volunteers only where their services are offered
freely and without pressure or coercion, direct or implied, from an employer.
(d) An individual shall not be considered a volunteer if the individual is otherwise
employed by the same public agency to perform the same type of services as those for
which the individual proposes to volunteer.
8. An employee is paid biweekly
(every two weeks). The overtime is
figured for all hours worked over 80 in
the pay period.
FALSE
SUN
MON
TUE
WED
THURS
FRI
SAT
1
2
3
4
5
6
7
8
9
10
11
(12
13
14
15
16
17
18)
19
20
21
22
23
24
25
26
27
28
29
30
31
SUN
MON
TUE
WED
THURS
FRI
SAT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
9. An employer conducts a
mandatory staff meeting after regular
work hours. The time spent at the
meeting is not during their scheduled
work time so the employees need not
be paid for that time.
FALSE
ARM 24.16.1009
Hours Worked
 Voluntary
 Outside Regular Working
Hours
 No productive work during
attendance
 Not job related
10. An employee lives in Helena and is
traveling to Bozeman to attend a training
seminar. The employee will leave at
7:00 a.m. and return to Helena at 6:30
p.m. on the same day. The employee
normally works an 8 hour day. This
employee only needs to be compensated
for a regular 8 hour day.
FALSE
ARM 24.16.1010 -- Travel Time
 Home to Work –
 Home to Work –
(Special One Day Assignment)
 Travel Away From Home
Community –
 Travel All
in the Day’s
Work –
 Work Performed While
Traveling –
11. An employee works for an
employer and earns two different
rates of pay. This employee needs to
be paid overtime at the last rate
worked.
FALSE
Overtime
Weighted Average
36 hours x $8.05/hr = $289.80
10 hours x $8.25/hr = $ 82.50
46 total hours
$372.30 regular wages
$372.30 ÷ 46 = $8.09 regular rate
$8.09 ÷ 2 = $4.05 ½ rate
$4.05 x 6 overtime hours = $24.30
$372.30 regular earnings for all hours worked
$ 24.30 additional overtime earnings
$396.60 total due
16. A bus driver is to be
compensated only for the time spent
driving the bus to a school function
out of town.
FALSE
Overtime
Weighted Average
500 miles (10 hrs) x $.30/mile =
1 trip piece rate (10 hrs)
22 hours x $8.25/hr =
42 total hours
$150.00
$100.00
$181.50
$431.50
$431.50 ÷ 42 = $10.27 regular rate
$ 10.27 ÷ 2 = $5.14 ½ time rate
$ 5.14 x 2 overtime hours = $10.28
$431.50 regular earnings for all hours worked
$ 10.28 additional overtime earnings
$441.78 total due
12. Compensatory time can be
provided to employees instead of
receiving overtime in the public
sector.
TRUE
FLSA Title 29 Part 553 –
§553.20 Authorizes only state and local governments to
offer compensatory time in lieu of overtime
compensation.
§553.21(3)(A) Limits the amount of compensatory time
earned to 480 for employees engaged in public safety
activities, emergency response activities, or a seasonal
activity. If work does not involve these activities
compensatory time is limited to 240 hours. If the
employee exceeds these limits, the time must be paid in
overtime compensation.
Overtime
Overtime - Compensatory
Pay in a week comp time is earned:
40 hrs regular time X $10.00/hr=
$400.00
4 hours OT x 1.5 = 6 hrs compensatory time
44 hours worked
Paid $400.00
Pay in a week comp time is used:
34 hours regular time X $10.00/hr =
$340.00
6 hours compensatory time X $10.00/hr =
$ 60.00*
40 hours
Paid $400.00
*6 hrs X $10 = 4 hrs X $15
14. An employee is moving computer
equipment when a laptop slips and
breaks. The employer has a company
policy to withhold damages from the
employee’s paycheck. The employee
signed the handbook acknowledging they
are aware of the policy so the employer
can withhold the damages or cost of
replacement from their paycheck.
FALSE
Attorney General Opinions
Volume 36, No. 17 / Volume 25, No. 11
Employers cannot withhold from wages for
damages, shortages, or mistakes.
24.16.1507 ARM – “Free and Clear”,
“Kickbacks”
Wages have to be paid finally and
unconditionally.
39-3-208 MCA
Contracts not in compliance with law
are null and void
18. It is required by both federal and
state law that employees are to
receive a 15 minute break for every
four hours worked and a lunch break
of at least 30 minutes for every six
hours of work.
FALSE
There is no state or federal requirement for
employer to provide rest break or meal period.
If employer chooses to provide rest break or meal
period, 24.16.1006 ARM would apply to determine
if time is hours worked.
 5-20 minute break is work time.
 30 minutes or more for meal period where
employee is completely relieved
from duty is not work time.
 Benefit may be determined
or provided through CBA
23. It is the employee’s responsibility
to keep track of all hours worked and
to provide that information to the
employer.
FALSE
Employer can determine how to keep and
maintain time records – time clock vs. on
your honor system
Rounding practices are allowed under ARM
24.16.1012 – has to benefit both parties and cannot be
rounded beyond the nearest quarter hour.
All employees are encouraged to maintain their own
records – human and computer errors happen. Use to
compare and ensure compliance.
Garsjo Supreme Court decision. Determined
that if employer fails to maintain records,
employee’s records will be used with
reasonable inference.
Could transfer burden of proof.
Administrative Process
Investigate
Prevailing Wage
What is it?
Does it affect me?
Jurisdiction
Prevailing Wage
Montana’s Little
Davis-Bacon Act
• Contracts for construction or non-construction services
in excess of $25,000 let by the state, county, municipality,
school district, or political subdivision.
• Minimum wage amount that workers must be paid on
public works contracts (basic hourly rate and fringe
benefits)
Prevailing Wage
What we do…
• Conduct yearly
surveys to determine
wage rate schedule
• Establish wage rates
for use on public
works contracts
• Inspect and audit
payroll records
• Investigate wage
complaints
• Conduct on-site visit
on projects
• Educate employers
and employees
Child Labor
Age Restrictions
Hour Restrictions
Hazardous Occupations
Jurisdiction
Montana Child Labor Standards Act
of 1993
Protect young workers from employment that
might interfere with their educational
opportunities or be detrimental to their health
or well-being.
Minor
Individual that is under 18 years
of age, except:
• Has received a high school
diploma or a passing score on
their G.E.D. exam; or
• Is 16 years of age or older and
is enrolled as a registered
state or federal apprentice
Exemptions
Youths of Any Age May Be Employed
•
•
•
•
•
•
•
•
By their parents/legal guardians
Agriculture/farming with parental consent
Delivery/collection of newspapers
Casual, community, non-revenue raising
uncompensated activity
Actor, model or performer
Legislative aide
Casual domestic work at a person’s home
Official or referee for nonprofit athletic organization
Jurisdiction
• Applies to all minors
– migrant as well as resident.
• Montana is looks to Federal statutes for
clarification
• Enforced by County Attorney or USDOL
Hour Restrictions
16 & 17 year olds
There are no state or
federal restrictions
on the number of
hours a 16 or 17 year
old can work
Hour Restrictions
14 & 15 year olds
• During school hours
• Before 7 a.m. or after 7p.m.
during the school year;
• Before 7 a.m. or after 9 p.m.
outside the school year
• Applies to homeschool
Hour Restrictions
14 & 15 year olds
• More than 3 hours on a
school day;
• 18 hours in a school week;
• 8 hours on a non-school
day;
• 40 hours in a non-school
week
Jobs 14 & 15 Year-Olds May Do
Jobs
15 Year-Olds May Do
Prohibited Jobs for 14 or 15 year olds
Prohibited Jobs for 16 or 17 year olds
Hazardous Occupations
17 Occupations considered hazardous
by the U.S. Department of Labor.
Non-Agriculture
Hazardous Orders
•
•
•
•
•
•
•
•
•
•
•
HO 1 Manufacturing and storing of explosives
HO 2 Driving or Outside Helper on Motor Vehicles
HO 3 Coal Mining
HO 4 Forest firefighting, fire prevention, forestry service, logging, and sawmilling
HO 5 Power-driven Woodworking Machines
HO 6 Exposure to radioactive substances
HO 7 Power-driven Hoisting Apparatus
HO 8 Power-driven Metal-forming, Punching & Shearing machines
HO 9 Mining , other than coal mining
HO 10 Power-Driven Meat Processing Machines
HO 11 Power-Driven Bakery Machines
Non-Agriculture
Hazardous Orders
•
•
•
•
•
•
HO 12 Balers, Compactors & Power-Driven Paper-Products Machines
HO 13 Manufacturing bricks, tile and kindred products
HO 14 Power-Driven Band Saws, Circular Saws, Guillotine Shears, Chain Saws,
Reciprocating Saws, Wood Chippers & Abrasive Cutting Discs
HO 15 Wrecking, Demolition, & Ship Breaking Operations
HO 16 Roofing Occupations & All Work On or About a Roof
HO 17 Occupations in Excavation
Agriculture
16 & 17 Year Olds
Once a youth reaches 16
years of age, he or she is
no longer subject to the
Federal agricultural youth
employment provisions*
*In non-agriculture a youth must be 18 years
old to no longer be subject to the FLSA
provisions
Agriculture
14 or 15 year olds
May work outside school
hours in any agricultural
occupation except the 11
hazardous farm jobs*
*The eleven hazardous occupations does not apply
to youths employed on farms owned or operated by
their parents or guardians
Agriculture
Under 14 Years Old
On small farms, less
than 500 man days
per quarter, may work
with written parental
consent or on a farm
that employs their
parent or guardian
Agriculture
Hazardous Orders
•
•
•
•
•
•
•
•
•
•
•
Tractor over 20 PTO horsepower
Corn picker, grain combine, hay mower, hay baler, potato digger, mobile pea viner, feed
grinder, crop dryer, forage blower, auger conveyor, power post-hole digger, etc.
Trencher or earthmoving equipment, fork lift, power-driven circular, band, or chain saw;
Working in a yard, pen, or stall occupied by a bull, boar, or stud horse maintained for
breeding purposes; a sow with suckling pigs; or a cow with a newborn calf
Felling, buckling, skidding, loading, or unloading timber with a butt diameter > 6 inches;
Working from a ladder or scaffold at a height of over 20 feet;
Driving a vehicle to transport passengers, or riding on a tractor as a passenger or helper
Working inside a fruit, forage, or grain storage
Handling or applying toxic agricultural chemicals identified by the words "danger,"
"poison," or "warning" or a skull and crossbones on the label;
Handling or using explosives; and
Transporting, transferring, or applying anhydrous ammonia.
Most Common Violations
(Based on 2008 US DOL Survey)
• Hour restrictions – 14 & 15 year olds working late
• Employee performing hazardous duties outside of
what they were hired to do
– Forklifts
– Meat Slicers
QUESTIONS