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HCM
PREVAILING WAGE

Montana prevailing wage law

Whether Montana requires prevailing wages on public construction, from what contract size, who sets the rates, and what contractors file. Each fact links its official source and the date it was checked.

Facts checked on October 6, 2026 against the official sources listed at the end of this page. For contractors and employers. General information, not legal advice: confirm the rules with the awarding body or the agency before you bid. Reviewed every year.

Prevailing wage in Montana at a glance

State prevailing wage law
In forceMCA 18-2-401 to 18-2-432
Contract threshold
Over $25,000
Certified payroll
Kept for inspection, not filed routinely
Federal work
Davis-Bacon, over $2,000

Montana prevailing wage rules

The law
Montana requires the standard prevailing rate of wages, including fringe benefits, on public works contracts over $25,000 (MCA 18-2-403, 18-2-401).Source: Montana Code Annotated 18-2-403, Preference of Montana labor in public works -- wages (opens in a new tab), checked October 6, 2026
Who it covers
Contracts for construction services let by the state, a county, municipality, school district or political subdivision (MCA 18-2-401(11)); also contracts over $25,000 financed from certain bond proceeds (MCA 18-2-403(7)).Source: Montana Code Annotated 18-2-401, Definitions (opens in a new tab), checked October 6, 2026
Threshold
Applies to a public works contract whose total cost is in excess of $25,000 (MCA 18-2-401(11)).Source: Montana Code Annotated 18-2-401, Definitions (opens in a new tab), checked October 6, 2026
Rates
Rate determinations (opens in a new tab)The department's yearly rate publications (2026: building, heavy and highway construction, and nonconstruction services), set from an annual survey of contractors.Source: Montana Department of Labor & Industry, Montana Prevailing Wage Rates (opens in a new tab), checked October 6, 2026
Certified payroll
No routine filing. If a complaint is filed, the department may require certified copies of the project's payroll records, due within 5 days of its request; contractors pay hourly employees weekly and keep payroll records 3 years (MCA 18-2-423, 18-2-422).Source: Montana Code Annotated 18-2-423, Submission of payroll records (opens in a new tab), checked October 6, 2026
Registration
Part 4 has no public-works registration, but a construction contractor needs a current license from the department to do business in Montana (MCA 37-45-201, enacted 2025, Ch. 644). Exempt are, among others, contractors with no employees, licensed electricians and plumbers within their license, and jobs under $2,500 (MCA 37-45-104).Source: Montana Code Annotated 37-45-201, Construction contractor license required (opens in a new tab), checked October 6, 2026

Federally funded work in Montana

On a project whose federal funding carries Davis-Bacon, the federal rules apply whatever the state law says. Whether Montana's own law applies as well is in its coverage above: some state laws leave federally funded projects out.

Davis-Bacon
Federal Davis-Bacon labor standards apply to contracts over $2,000 for the construction, alteration or repair of public buildings or public works, or of work financed with federal funds under a law that requires Davis-Bacon, one of the Related Acts (29 CFR 5.5(a)).Source: 29 CFR 5.5, Contract provisions and related matters (opens in a new tab), checked October 6, 2026
Certified payroll
On Davis-Bacon work, each contractor and subcontractor submits certified payrolls weekly, for each week of covered work; the prime contractor is responsible for its subcontractors' payrolls (29 CFR 5.5(a)(3)(ii)(A)).Source: 29 CFR 5.5, Contract provisions and related matters (opens in a new tab), checked October 6, 2026

WORKLIO HCM

Prevailing wage and certified payroll in Worklio HCM

Set up prevailing wage rates by project, location and classification: your team assigns each worker's classification and apprentice step, and payroll applies the rates. Fringe benefits are calculated as cash or plan contributions, union dues and benefit packages are deducted with remittance reports by local, apprentices are paid at progressive rates by level, and WH-347 certified payroll reports carry job costing segments. Workers' comp class codes are set per job and employee. Union, prevailing wage, and certified payroll is available as an add-on to any plan.

See the union, prevailing wage, and certified payroll add-on

Prevailing wage in other states

Sources

The statute, agency page or federal rule behind each fact, as checked.

General information, not legal or tax advice. Rules change; confirm current requirements with the relevant agency or your advisor. You remain responsible for paying the required rates and filing on time.

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