Overview of Labor Laws Affecting Montana Employers. Presented to Montana Lodging and Hospitality Association

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1 Overview of Labor Laws Affecting Montana Employers Presented to Montana Lodging and Hospitality Association

2 Overview Montana is one of the states that has laws which often set higher standards than federal laws Employees who work in Montana are entitled to the more generous /higher of the state or federal standard or benefit Montana has a newer constitution than 48 other states. It contains many employee protective provisions such as privacy and human rights The following are some of the most misunderstood/violated labor laws applicable to Montana employers.

3 Wrongful Discharge Montana is not an "At-Will" employment state All terminations must be for a legitimate, job related reason Economic necessity is legitimate if not a pretext In order to terminate for misconduct, "good Cause" must be shown. If you have a grievance procedure and provide it to terminating employee, they must utilize it or they might loose their right to sue

4 Wrongful Discharge- Good Cause In order to demonstrate good cause, you should be able to demonstrate: The employee knew of the rule s/he is accused of violating The rule is legitimate and reasonable and job related The employer investigated and has proof of culpability The penalty fits the crime and is similar to that received by similarly situated individuals All of the above is documented

5 Human Rights Federal rules apply to employers with 15+ employees Montana rules apply to all employers Discrimination based on protected classes (only) is prohibited. Treating individuals differently based on reasonable job related grounds is usually lawful

6 Who Is Protected Federal and State Protect: Race, sex, color, religion, disabilities, age and national origin Federal protects: Genetic History (if more than 15 employees) Montana protects: All ages Marital status sexual orientation (in four communities) Both laws have a "reasonable demands" exception

7 What is Discrimination? Different Treatment- intentionally treating folks differently Adverse Impact- Establishing rules that are more difficult for protected class members to satisfy without justification. Retaliation- Adverse Actions against people who have exercised rights. Harassment based on protected class standards Failing to accommodate religion or disabilities when reasonable to do so.

8 Harassment Two main forms of harassment Quid Pro Quo- A tangible job benefit is at risk based on willingness to participate Hostile Work Environment- where the work environment exudes racial, sexual or other biases Perpetrators can include: Supervisors whose actions are imputed to the employer Co-workers Customers Sexual favoritism is also prohibited

9 Accommodation Employers must make identified accommodations for disabilities or religious reasons unless doing so would be an undue hardship to the employer. If, with an accommodation, an employee cannot perform the essential functions of their job, they are no longer protected. Individuals must be otherwise qualified to be entitled to accommodation

10 Wage and Hour Most employees are covered by minimum wage and Overtime rules. Some are exempt from OT and some from min. wage and OT Montana exemptions are different than federal exemptions. Feds are considering an increase of minimum salary to be exempt to $970 a week.

11 Minimum and Overtime Pay Montana's minimum wage will remain at $8.05 for Minimum and overtime pay is required when employees work over 40 hours in a week regardless of: method of payment of wages (i.e., salary, hourly, piece work, commissioned) frequency of payroll unless they qualify for an overtime exception Overtime pay is based on all compensation paid to employee including commissions and most bonuses

12 Time Worked The following are usually working time: Most meetings and training events 'Coffee' breaks of less than 30 minutes Travel during a work day Work suffered or permitted The following need not be paid: Meal periods exceeding 30 minutes when employee is relieved of duty travel to a from work Most on-call time

13 Drug & Alcohol Testing Drug and Alcohol Testing Testing limited to employees who: Work in Hazardous Work Environments Drive as part of job duties Have fiduciary responsibilities Work in public health or public safety occupations Must be tested by federal law A written policy must be in place and contain certain content Testing Allowed of covered employees: When hired or when reasonable suspicion exists When selected for a random test After some accidents or after a positive test

14 Lifestyle Privacy Employers may not discriminate against individuals who use lawful substances away from work unless it is medical marijuana Medical marijuana use is not protected by labor law

15 Common Myths Salaried employees, supervisors and degreed employees are exempt from overtime laws. Employees must be provided coffee breaks and meal periods If you drug test anyone you must drug test all employees Labor laws are the same for all employers I am not responsible for problems if employees do not report them.

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