Hiring employees in Montana: the 2026 compliance checklist for employers and recruiters

As of October 2026, an employer hiring in Montana has to register for unemployment insurance with the Department of Labor and Industry (DLI) once payroll reaches $1,000 a year, register for wage withholding with the Department of Revenue, cover its employees for workers' compensation, have each new hire complete Form MW-4, keep an E-Verify result or a completed Form I-9 with document copies under the 2025 LEGAL Act, settle any probationary period other than the 12-month default before the employee starts, and report the hire within 20 days. Montana bars recording a conversation with a hidden device unless every party knows, so warn candidates at the start of an interview. We found no Montana pay-range, salary history or private-employer ban-the-box law.

This page is the Montana hub: one table with every item and its official source, then a short section on each. Where we already have a full guide to an item, the section summarizes it and links there.

The Montana hiring checklist at a glance

What must be in place before the first Montana hire?

Two tax accounts. DLI's unemployment insurance employer handbook says you are a covered employer if "your total annual payroll for the current or preceding calendar year equals or exceeds $1,000," that a covered employer "must register" online, and that "it is against the law to deduct UI taxes from your employees' wages." The Department of Revenue's employer guide says employers subject to wage withholding "must register with the Montana Department of Revenue," choosing "Withholding" as the tax type.

Then workers' compensation. MCA 39-71-401 says the Workers' Compensation Act "applies to all employers and to all employees," and an employer with any employee must elect a compensation plan: self-insurance (plan No. 1), an authorized private insurer (plan No. 2) or the state fund (plan No. 3). Household work, casual employment and sole proprietors, among others, are exempt unless coverage is elected. The federal layer (an EIN, Form W-4 and Form I-9 by the third business day) applies on top.

Does a staffing or recruiting agency need a Montana license?

No. The Employment Agency Act, Title 39, chapter 5, appears in the code as repealed, licensing part included. Professional employer organizations are the exception: MCA 39-8-202 requires a license, with a $750 application fee for an unrestricted license. Our guide to Montana staffing agency rules explains how the good-cause discharge law reaches temporary workers.

What must a Montana job posting include, and can you ask about pay history?

We found no Montana statute that requires pay ranges in job postings or bars salary history questions for private employers, and Montana does not appear in our trackers of pay transparency laws by state or salary history ban states. A Montana posting for a remote role open to candidates in Washington, Colorado or another pay-range state can still pick up that state's rules.

When can you ask about criminal history or run a credit check?

State law sets no timing rule for private employers that we could find. A 2020 staff memo for the Legislature's Economic Affairs Interim Committee says SB 168 (2019) "would have disallowed" a criminal history question on an initial job application, and the bill did not become law. One screening tool is banned outright: MCA 39-2-304 bars requiring "a polygraph test or any form of a mechanical lie detector test as a condition for employment." Federal rules still apply, including the FCRA background check process.

For credit reports, Montana is not among the states in our credit check laws guide, so the federal FCRA's written disclosure, authorization and adverse action steps are the rule.

Can you record or transcribe a job interview in Montana?

Yes, after a warning. MCA 45-8-213(1)(c) makes it an offense to record a conversation "by use of a hidden electronic or mechanical device" without "the knowledge of all parties to the conversation." The rule does not apply to "persons given warning of the transcription or recording," and "if one person provides the warning, either party may record." Subsection (3) also bars purposely intercepting an electronic communication without a warning. Penalties reach $500 and six months in jail. Start every interview with a spoken notice; see Montana recording consent law for interviews, two-party consent states and our interview recording consent script.

Does Montana regulate AI in hiring?

Not as of October 2026. The closest law is the 2025 Right to Compute Act, MCA 2-10-201 through 2-10-207, which shields private computing from government limits; MCA 2-10-205 requires a risk management policy only when critical infrastructure facilities are controlled by a critical AI system. Nothing in it requires notice to candidates, bias audits or human review of hiring tools. See AI hiring laws by state.

Can you drug test applicants in Montana?

Yes, under a qualified testing program. The Workforce Drug and Alcohol Testing Act says in MCA 39-2-208(1) that "an employer may test any prospective employee as a condition of hire." Under 39-2-207, the written policy must be available for review by all employees 60 days before it takes effect; testing is at the employer's expense; and a medical review officer must review and certify a positive result before the employer acts. The Act's definition of employee covers hazardous work, security positions and jobs affecting public safety or health, involving driving or carrying a fiduciary duty, so check that a role fits. See our drug testing laws guide.

Does Montana require E-Verify?

Not as such. The Legal Employment and Government Accountability Law, enacted in 2025, requires every employer to keep a copy of either the employee's status "verified by the United States citizenship and immigration services' e-verify program" or "a completed form I-9 with corresponding documents that establish both identity and employment authorization." An employer that used E-Verify is presumed to have acted in good faith. Penalties are in E-Verify requirements in Montana.

Which state withholding form does a new hire complete?

Form MW-4. The Department of Revenue's employer guide says "new employees must complete" it "when they are hired." From January 1, 2026, the withholding method no longer uses Montana allowances and instead relies on the federal standard deduction for the employee's filing status. If an employee claims an exemption, the employer submits that MW-4 through the TransAction Portal, and the exemption is renewed by January 31 each year.

Which notices must a new Montana employee get at hire?

• The probationary period. Under MCA 39-2-910, if the employer does not set a specific period, or say there is none, "prior to or at the time the employee begins work," the period is 12 months, extendable to 18. During it either side may end the job for any reason; afterward MCA 39-2-904 makes a discharge without good cause wrongful. Put the period in the offer letter.
• Posters. DLI's labor law poster page lists the Montana wage and hour poster (the 2026 minimum wage is $10.85) alongside the federal posters.
• Drug testing policy, if you test. Available to employees 60 days before testing starts.

How do you report a new hire in Montana?

To the New Hire Reporting Program run by the Department of Public Health and Human Services' Child Support Services Division. Its program page says "employers must report newly hired and rehired employees within twenty (20) days from the date of hire," and its FAQ counts a rehire after more than 60 consecutive days away. MCA 40-5-922 requires the employee's name, date of hire, Social Security number and residential and mailing addresses, and the employer's name, address and federal identification number; a copy of the W-4 is acceptable.

The Montana hiring steps in order

1. Before the first hire: register for unemployment insurance with DLI and for withholding with the Department of Revenue, and elect a workers' compensation plan.
2. Posting: no Montana pay range rule, but check the rules of any other state where candidates for a remote role live.
3. Screening: we found no state limit on criminal history questions; never require a lie detector test; follow the FCRA for checks.
4. Interview: warn the candidate before recording or transcribing, every time.
5. Offer: state the probationary period; drug test only under a qualified program.
6. First day: Form I-9 with document copies (or E-Verify), W-4 and MW-4.
7. Within 20 days of the hire: report to the New Hire Reporting Program.

Hiring in more than one state? The same checklist is available for Iowa, Kansas, Kentucky, Louisiana, Maine, Mississippi and Missouri, and among the earlier checklists for Washington, Colorado and Minnesota.