Montana Severance Compensation Program
Description
How to fill out Severance Compensation Program?
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FAQ
Private sector employers are not required to pay out severance pay, sick leave, or paid time off (PTO). These are considered benefits and may be paid based on the employer's policies. There is no requirement in state law to provide these benefits.
Three U.S. states (California, Colorado, and Montana) prohibit use-it-or-lose-it policies for vacation time, which means that unused vacation time must carry over from year to year. Or, employers can choose to cash out unused vacation pay at the end of the year.
Under Montana law, ?Good cause? is defined as ? reasonable job-related grounds for dismissal based on a failure to satisfactorily perform job duties, disruption of the employer's operation, or other legitimate business reason.? MCA § 39-2-903(5).
Wrongful termination from employment in Montana can arise under several circumstances. First, an employee terminated from his employment because of being a part of a protected class, or reporting discriminatory conduct, is entitled to recovery under both state and federal law.
Montana is the only state that is not an at-will-employment state. Montana enforces a "good cause" standard for terminating employment. Mont. Code § 39-2-903 & Mont.
Montana prohibits use-it-or-lose-it for vacation time. If an employer provides vacation time, however, vacation time that has been earned ing to an employer's policy is considered wages and therefore is due and payable in the same manner as regular wages.
If an employee is laid off, or discharged, all wages are due immediately unless the employer has a pre-existing, written personnel policy that extends the time for payment. The wages cannot be delayed beyond the next pay day for the period in which the separation occurred, or 15 days, whichever occurs first.
Montana law requires that employers pay for any business expenses that an employee pays as a direct consequence of their duties and responsibilities as an employee, or as a result of the directions of their employer. Mont. Code Ann. § 39-2-701.