Montana tip pooling laws & tipped minimum wage
Montana is one of only seven states that ban the tip credit: every tipped worker gets the full minimum wage in cash, and tips are pure upside.
| Regular minimum wage | $10.85/hr |
| Minimum cash wage for tipped workers | $10.85/hr (full minimum) |
| Maximum tip credit | Not allowed |
| Tips belong to | Employees — always |
Rates reviewed June 2026. Rates change — confirm with the Montana labor department. Not legal advice.
What's specific to Montana
Montana bans the tip credit — tipped workers receive the full minimum wage before tips.
Tip pooling in Montana
Montana follows the federal baseline for pooling: employers may require tip pooling, and because no tip credit exists, pools may legally include back-of-house workers like cooks and dishwashers. Managers and supervisors are always excluded.
Two federal rules apply no matter what: managers and supervisors can never take from a tip pool, and credit card processing fees can only be deducted from tips where state law allows it — and several no-tip-credit states restrict that practice too.
What this means for your tip-out
Because Montana pays full minimum wage before tips, tip-outs hit less hard — your base pay is guaranteed regardless of how the pool splits. Still, the math matters on busy nights. Use our tip-out calculator to split a shift by your house's percentages or by hours, and see standard tip-out percentages to check whether your house's rates are typical.
Montana tip law FAQs
What is the tipped minimum wage in Montana?
Montana does not allow a tip credit, so tipped employees must be paid the full minimum wage of $10.85/hr in cash. All tips come on top of that wage.
Is mandatory tip pooling legal in Montana?
Montana follows the federal baseline for pooling: employers may require tip pooling, and because no tip credit exists, pools may legally include back-of-house workers like cooks and dishwashers. Managers and supervisors are always excluded.
Can my manager take a cut of the tip pool in Montana?
No. Federal law prohibits managers, supervisors, and owners from keeping any portion of employee tips in every state, including Montana. A manager may keep only tips they directly and solely earned (e.g., a table they personally served start to finish).