At a Glance
Quick Answer
Montana has an active prevailing wage law (Montana Prevailing Wage Law (MCA Title 18, Chapter 2, Part 4)). Administered by Montana Department of Labor and Industry, Compliance and Investigations Bureau. Certified payroll is required. Federal Davis-Bacon applies to all federal projects.
Montana's prevailing wage law applies to public works construction and nonconstruction service contracts exceeding $25,000 awarded by the state, counties, municipalities, or school districts. At least 50% of workers must be Montana residents unless prohibited by federal law.
Context
Prevailing Wage & Bidding in Montana
Montana's prevailing wage law (MCA Title 18, Chapter 2, Part 4) is administered by the Department of Labor and Industry's Compliance and Investigations Bureau and applies to public works contracts exceeding $25,000 awarded by the state, counties, municipalities, or school districts. Notably, coverage extends to both construction and certain nonconstruction service contracts, so when you bid Montana public work above the threshold, confirm which category applies and price labor at the standard prevailing rates DLI establishes through its surveys for the relevant district and trade.
Montana adds a residency dimension that directly affects how you staff and price a job: at least 50 percent of the workforce on covered projects must be Montana residents unless federal law prohibits that requirement. Build this into your crew planning and subcontractor selection, particularly if you are an out-of-state bidder relying on traveling labor. Certified payroll is required, and on multi-year contracts running more than 30 months you must account for wage rate adjustments, so for longer schedules carry an escalation assumption rather than locking your entire labor basis to today's rate.
The compliance pitfalls are predictable. Underpayment, misclassification, or failing to maintain records can trigger back-wage liability, civil penalties, and debarment from public contracts. When federal money is involved, Davis-Bacon also applies and you pay the higher rate by trade, while still meeting state residency and reporting rules. Before bidding, pull the current DLI wage determination, confirm the residency obligation against your staffing plan, and reconcile any federal wage determination so your number reflects the most stringent applicable standard.
Details
Coverage Details
State Law Details
- Law
- Montana Prevailing Wage Law (MCA Title 18, Chapter 2, Part 4)
- Agency
- Montana Department of Labor and Industry, Compliance and Investigations Bureau
- Thresholds
- Public works contracts exceeding $25,000
- Certified Payroll
- Required
Federal Davis-Bacon Coverage
The federal Davis-Bacon Act applies to all federally funded or federally assisted construction contracts over $2,000 in Montana. This includes projects funded by federal agencies, FHWA highway projects, HUD housing, and projects receiving federal grants.
Reference
Key Facts
Applies to public works contracts exceeding $25,000
At least 50% of workers must be Montana residents
Covers both construction and nonconstruction service contracts
Prevailing wage rates set through surveys by DLI Compliance Bureau
Multi-year contracts over 30 months require wage rate adjustments
Enforcement
Penalties
Contractors face payment of back wages, debarment from public contracts, and civil penalties. Failure to maintain records may result in additional sanctions.
Resources
Related Tools & Templates
Turn wage rules into bid-ready alerts
Use ConstructionBids.ai to track matching public projects, save bid searches, and move wage-sensitive scopes into your estimating workflow.
FAQ
Questions Contractors Ask
Does Montana have a prevailing wage law?
Yes. Montana has an active state prevailing wage law: Montana Prevailing Wage Law (MCA Title 18, Chapter 2, Part 4). Montana's prevailing wage law applies to public works construction and nonconstruction service contracts exceeding $25,000 awarded by the state, counties, municipalities, or school districts. At least 50% of workers must be Montana residents unless prohibited by federal law.
Does Davis-Bacon apply in Montana?
Yes. The federal Davis-Bacon Act applies to all federally funded construction projects over $2,000 in Montana, regardless of state law. Contractors must pay the prevailing wage rate determined by the DOL for the project location.
Is certified payroll required in Montana?
Yes. Montana requires certified payroll on state prevailing wage projects. Additionally, certified payroll is always required on federal Davis-Bacon projects using form WH-347.
What are the penalties for prevailing wage violations in Montana?
Contractors face payment of back wages, debarment from public contracts, and civil penalties. Failure to maintain records may result in additional sanctions.
What is Montana's prevailing wage threshold?
Montana's law applies to public works contracts exceeding $25,000 awarded by the state, counties, municipalities, or school districts. Coverage includes both construction and certain nonconstruction service contracts, so confirm which category your work falls under and apply the Department of Labor and Industry rates for the relevant district and trade.
Does Montana require resident workers on prevailing wage jobs?
Yes. At least 50 percent of the workforce on covered public works must be Montana residents, unless federal law prohibits that requirement. Out-of-state bidders relying on traveling crews should plan staffing and subcontracting accordingly, because failing to meet the residency standard can create compliance exposure separate from wage rates.
How are wage rates handled on long Montana contracts?
On multi-year contracts running more than 30 months, Montana requires wage rate adjustments. Because rates can change across that span, build an escalation assumption into your labor estimate rather than locking the entire job to current rates. Always confirm the controlling DLI determination for your district and trades before bidding.