Montana — Hiring & Onboarding

Montana requires all employers to verify the lawful employment status of every new hire before work begins, under the Legal Employment and Government Accountability Law (HB 226, effective July 1, 2025). Employers must verify work authorization using either Form I-9 documentation or E-Verify. The Montana Department of Labor & Industry (DLI) enforces the law through audits and investigations—both random and complaint-driven—and applies a tiered penalty structure with escalating fines and potential license suspension for repeat violators. The law protects employers who act in good faith and comply with federal law.

Source: Montana DLI, Legal Employment and Government Accountability Law announcement

Montana is the only U.S. state that has abolished employment at-will for employees who complete a probationary period. After probation, employees may be discharged only for good cause, in retaliation for refusing to violate public policy, for violating an express written personnel policy, or based on protected free speech. During the probationary period, however, employment remains at-will and may be terminated "by either the employer or the employee on notice to the other for any reason or for no reason."

Default 12-month period. If an employer does not establish a specific probationary period—or does not affirmatively provide that there is no probationary period—prior to or at the time the employee begins work, Montana law imposes a default probationary period of 12 months commencing on the employee's start date. This default increased from six months to 12 months effective April 1, 2021, under amendments to Mont. Code Ann. § 39-2-910.

18-month ceiling. An employer may set a probationary period shorter than 12 months or longer than 12 months, but the probationary period—including any extensions—may not exceed 18 months total. Employers may extend the probationary period while it is still in effect, provided the total does not exceed 18 months. The statute does not require new consideration or employee consent to extend a probationary period that is still running.

Leaves of absence. If an employee takes one or more leaves of absence during the original probationary period or any extension, the time of each leave of absence is not automatically counted as part of the probationary period. A leave of absence is defined as an absence from work of more than five consecutive working days for any reason other than holidays and vacations. The employer must affirmatively elect to include each leave of absence as part of the probationary period; absent such an election, the leave time tolls the probationary clock.

Opting out. An employer may affirmatively provide that there is no probationary period at all. In that case, the good-cause protections of the Wrongful Discharge from Employment Act apply from day one of employment.

Hiring-practice implications. Employers hiring in Montana should establish the probationary period—or the absence of one—in writing before or at the time the employee begins work. Offer letters, employment agreements, or onboarding documentation should specify the probationary period length (e.g., 90 days, six months, 12 months, or 18 months) or state explicitly that there is no probationary period. Failing to address the probationary period in writing triggers the statutory 12-month default and may limit the employer's ability to structure performance-evaluation timelines or terminate at-will beyond 12 months.

Source: Mont. Code Ann. § 39-2-910 Source: Mont. Code Ann. § 39-2-904