By Micah Drew DAILY MONTANAN
With the start of the new year, Montanans on the lowest end of the pay scale will get a small boost as the state’s mandatory minimum wage increase goes into effect.
As of Jan. 1, Montana’s minimum wage increased from $10.55 to $10.85.
Stemming from a 2006 law, Montana’s minimum wage is subject to a cost-of-living adjustment, based on the national increase in the consumer price index published by the Bureau of Labor Statistics.
According to state law, Montana businesses not covered by the federal Fair Labor Standards Act are those whose gross annual sales are $110,000 or less may pay $4 per hour.
Montana is one of 30 states — plus Washington D.C., Puerto Rico, Guam and the U.S. Virgin Islands — that have a minimum wage higher than the federal rate of $7.25.
Twelve states, plus D.C. adjust their wages annually based on set formulas.
Montana has one of the lowest minimum wages that exceeds federal levels, with only West Virginia coming in lower among states at $8.75. The highest minimum wage is in D.C., at $17.25.
