Montana's minimum wage to remain at $7.25 in 2010

The minimum hourly wage in Montana will remain at $7.25 next year. Montana law requires an annual adjustment to the state minimum wage to be calculated no later than September 30 of each year, rounded to the nearest five cents, based on inflation as measured by the CPI. The law specifically ties Montana's minimum wage to increases in the CPI, leaving no option for a reduced wage when the CPI declines (Montana Department of Labor and Industry Media Release, September 21, 2009).

The United States Bureau of Labor Statistics publishes the CPI, a measure of the average change in prices over time for a fixed market basket of goods and services, such as food, shelter, medical care, transportation fares and other goods and services people purchase for day to day living.

Montana's minimum wage increased twice this year, the first time in January, when it increased from $6.55 per hour to $6.90 per hour. It increased again in July to $7.25 per hour when the federal minimum wage increased.

Reprinted with permission. © CCH

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