Montana Whistleblower Laws: Protections and How to Report

Montana is the only U.S. state without at-will employment, giving both public and private workers whistleblower protection under the Wrongful Discharge From Employment Act (WDEA), Mont. Code Ann. section 39-2-904, which prohibits firing employees for reporting a violation of public policy.

A Summary of Montana Whistleblower Laws

Montana stands apart from every other state in the country because it is the only state that has replaced the employment-at-will doctrine with a statutory framework requiring employers to show good cause before terminating workers. The Wrongful Discharge From Employment Act (WDEA), codified at Mont. Code Ann. sections 39-2-901 through 39-2-915, provides the foundation for whistleblower protections in the state.

Beyond the WDEA, Montana offers additional protections through the Montana False Claims Act, the Whistleblower Award and Protection Act for securities violations, the Montana Human Rights Act, and the Employee and Community Hazardous Chemical Information Act. Together, these laws create a layered system of protections for employees who report wrongdoing.

This is a summary of Montana Whistleblower Laws. Make sure to check out the Federal Whistleblower Laws as well.

Who Is Protected Under Montana Whistleblower Laws

Montana whistleblower laws cover a broad range of workers depending on the specific statute involved.

Under the WDEA, all employees in the state are covered, including both public and private sector workers. However, the level of protection depends on whether the employee has completed the probationary period. Employees still within the probationary period are protected only against discharges that violate public policy or the employer's written personnel policy. Employees who have completed the probationary period receive the additional protection of the good cause requirement. Mont. Code Ann. section 39-2-904.

The Montana False Claims Act protects employees, agents, and contractors who report fraud against the state. Mont. Code Ann. section 17-8-412.

The Whistleblower Award and Protection Act covers any individual who provides information about potential securities law violations. Mont. Code Ann. section 30-10-1111.

The Montana Human Rights Act covers employees who oppose discriminatory practices or participate in discrimination proceedings. Mont. Code Ann. section 49-2-301.

Workers covered by a written collective bargaining agreement or a written employment contract for a specific term are generally excluded from the WDEA but may still be protected under other applicable statutes. Mont. Code Ann. section 39-2-912.

Wrongful Discharge From Employment Act (WDEA)

The WDEA is the cornerstone of employment protections in Montana. Enacted in 1987 and significantly amended in 2021, it provides that a discharge is wrongful if any of the following conditions apply.

The discharge was in retaliation for the employee's refusal to violate public policy or for reporting a violation of public policy. The discharge was not for good cause and the employee had completed the probationary period. The employer violated the express provisions of its own written personnel policy. Mont. Code Ann. section 39-2-904.

Key Definitions Under the WDEA

The WDEA defines several terms that are critical to understanding its scope.

Public policy means a policy in effect at the time of discharge concerning the public health, safety, or welfare established by constitutional provision, statute, or administrative rule. This is the standard that determines whether a whistleblower's report qualifies for protection. Mont. Code Ann. section 39-2-903.

Good cause means 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 determined by the employer. The use of a lawful product off the employer's premises during nonworking hours is not a legitimate business reason. Mont. Code Ann. section 39-2-903.

Constructive discharge means the voluntary termination of employment by an employee because of a situation created by an act or omission of the employer that an objective, reasonable person would find so intolerable that voluntary termination is the only reasonable alternative. It does not include situations where an employee leaves because of a refusal to promote or improve wages. Mont. Code Ann. section 39-2-903.

2021 Amendments to the WDEA (HB 254)

Montana's legislature made significant changes to the WDEA in 2021 through House Bill 254, signed into law on March 31, 2021. These changes affect both employers and employees.

Default probationary period extended. The default probationary period increased from 6 months to 12 months. Employers may extend the probationary period by up to an additional 6 months, for a maximum total of 18 months. Mont. Code Ann. section 39-2-904.

Leaves of absence excluded. Leaves of absence (defined as absences of more than 5 consecutive working days, excluding holidays and vacations) are no longer counted toward the probationary period unless the employer chooses to include them.

Employer notification requirement. Employers who maintain written internal appeal procedures must notify the discharged employee of those procedures within 14 days of the discharge, in writing or electronically. Mont. Code Ann. section 39-2-911.

During the probationary period, employees can still be fired for any reason or no reason. However, even probationary employees remain protected against discharges that retaliate for refusing to violate public policy or for reporting a public policy violation.

Montana False Claims Act

The Montana False Claims Act, codified at Mont. Code Ann. sections 17-8-401 through 17-8-416, targets fraud against state and local government entities. It allows private citizens to bring lawsuits (known as qui tam actions) on behalf of the state.

Prohibited Conduct

The False Claims Act imposes liability on any person who knowingly presents or causes the presentation of a false or fraudulent claim for payment to a governmental entity, knowingly makes or uses a false record or statement to get a false claim paid, or conspires to commit a violation of the Act. Mont. Code Ann. section 17-8-403.

Whistleblower Awards Under the False Claims Act

The financial incentives for reporting fraud are substantial.

Mont. Code Ann. section 17-8-410.

Penalties for False Claims

A person found liable under the Act must pay a civil penalty of not less than $5,500 and not more than $11,000 for each false claim, plus three times the amount of damages sustained by the governmental entity. The penalty amounts are adjusted periodically for inflation. Mont. Code Ann. section 17-8-403.

Retaliation Protections Under the False Claims Act

The False Claims Act includes its own anti-retaliation provision. No governmental entity, private entity, or person may discharge, demote, suspend, threaten, harass, or deny promotion to an employee, agent, or contractor because they disclosed information about potential false claims to a government or law enforcement agency. Employers are also prohibited from adopting rules that prevent employees from making such disclosures. Mont. Code Ann. section 17-8-412.

Remedies for retaliation under the False Claims Act include reinstatement to the same position with the same seniority status, salary, benefits, and other conditions of employment, as well as litigation costs and reasonable attorney fees. A retaliation claim must be filed within 3 years of the retaliatory act.

Statute of Limitations

A qui tam action under the False Claims Act must generally be filed within 6 years of the violation. In certain cases, the filing deadline may extend to 10 years.

Whistleblower Award and Protection Act (Securities Violations)

Montana enacted the Whistleblower Award and Protection Act in 2021 through House Bill 64. Codified at Mont. Code Ann. sections 30-10-1101 through 30-10-1111, this law focuses specifically on violations of state and federal securities laws.

Who Can File

Any individual who provides the state or a law enforcement agency with original information about a possible violation of state or federal securities laws may qualify as a whistleblower. The information must be provided voluntarily and in writing. Whistleblowers may submit complaints anonymously. Mont. Code Ann. section 30-10-1102.

Monetary Awards

The Commissioner of Securities and Insurance may award up to 30% of the fines and fees collected in a successful enforcement action to the whistleblower who provided the original information that led to the action.

Anti-Retaliation Protections

An employer may not terminate, discharge, demote, suspend, threaten, harass, or in any other manner retaliate against an individual for providing information about a possible securities law violation or for assisting in any related investigation or judicial action. Mont. Code Ann. section 30-10-1111.

Montana Human Rights Act (Discrimination Retaliation)

The Montana Human Rights Act, codified at Mont. Code Ann. section 49-2-301, prohibits retaliation against employees who oppose discriminatory practices.

It is an unlawful discriminatory practice to discharge, expel, or in any way discriminate against an individual in retaliation for opposing discriminatory practices forbidden by the statute, filing a complaint under the statute, or testifying or participating in an investigation or proceeding under the statute.

Filing a Discrimination Retaliation Complaint

Complaints must be filed with the Montana Human Rights Bureau within the Montana Department of Labor and Industry within 180 days of the retaliatory action. You can contact the Bureau by phone at (406) 444-2884 or toll-free at 1-800-542-0807.

The Bureau will assign an investigator who will conduct a fact-finding investigation and issue a determination. If reasonable cause is found, the Bureau will attempt to resolve the matter through conciliation. If conciliation fails, the case proceeds to a formal hearing before a hearing examiner.

Penalties for Discrimination Retaliation

Persons who willfully engage in discriminatory practices, interfere with the commission or department, or violate an order may be found guilty of a misdemeanor punishable by a fine of up to $500, imprisonment of up to 6 months, or both. Mont. Code Ann. section 49-2-601.

Employee and Community Hazardous Chemical Information Act

The Employee and Community Hazardous Chemical Information Act protects employees who raise concerns about hazardous chemical exposure in the workplace.

Employers may not discharge, discipline, or discriminate against an employee for exercising a right under the Act, making testimony under the Act, or assisting others in exercising their rights or duties under the Act. Employers must inform employees who may be exposed to hazardous chemicals of the potential exposure and must provide workplace chemical lists and safety data sheets. Mont. Code Ann. section 50-78-204(4).

Aggrieved employees may submit a written complaint to the local health officer or county attorney. Persons who violate this statute may be found guilty of a misdemeanor, and each day of the violation is treated as a separate offense.

How to File a Whistleblower Claim in Montana

The process for filing a whistleblower claim depends on which statute applies to your situation.

Wrongful Discharge Claims (WDEA)

1. Exhaust internal procedures first. If your employer maintains written internal appeal procedures, you must use them before filing a lawsuit. The employer must notify you of these procedures within 14 days of your discharge. If the employer fails to provide this notice, you are exempt from this requirement. Mont. Code Ann. section 39-2-911.
2. Wait up to 90 days. If the internal procedures are not completed within 90 days, they are considered exhausted and you may proceed to court.
3. File in court within 1 year. An action must be filed within 1 year after the date of discharge. The limitation period is tolled while internal procedures are being exhausted.

False Claims Act (Qui Tam)

1. File a complaint under seal in district court along with a written disclosure of the evidence.
2. Serve the attorney general. The state has the option to intervene and take over the case.
3. File within 6 years of the violation (up to 10 years in certain circumstances).

Securities Whistleblower Claims

1. Provide original information in writing to the Commissioner of Securities and Insurance or a law enforcement agency.
2. Anonymous reporting is allowed. You do not need to identify yourself to file a complaint.

Discrimination Retaliation Claims

1. File with the Human Rights Bureau within 180 days of the retaliatory action.
2. Contact information: (406) 444-2884 or 1-800-542-0807.

Whistleblower Hotlines and Resources in Montana

Remedies and Penalties for Whistleblower Retaliation

The remedies available to whistleblowers in Montana vary by statute.

WDEA Remedies

An employee who proves wrongful discharge may recover lost wages and fringe benefits for up to 4 years from the date of discharge, plus interest. Interim earnings (including amounts the employee could have earned with reasonable diligence) are deducted from the award. Before interim earnings are deducted, any reasonable job-search expenses are subtracted from those interim earnings first. Mont. Code Ann. section 39-2-905.

Punitive damages are available if the employee proves by clear and convincing evidence that the employer engaged in actual fraud or actual malice when discharging the employee in retaliation for refusing to violate public policy or for reporting a public policy violation.

There is no right to damages for pain and suffering, emotional distress, or compensatory damages beyond lost wages and fringe benefits under the WDEA. Mont. Code Ann. section 39-2-905.

False Claims Act Remedies

For the underlying fraud: treble damages (three times the harm to the state) plus civil penalties of $5,500 to $11,000 per violation.

For retaliation: reinstatement with the same seniority, salary, and benefits, plus litigation costs and attorney fees.

Securities Whistleblower Remedies

Monetary awards of up to 30% of fines and fees collected in a successful enforcement action, plus protection against retaliation.

Summary of Filing Deadlines

Federal Whistleblower Protections That Apply in Montana

In addition to state law, Montana employees may also be protected by federal whistleblower statutes. These include the federal False Claims Act (31 U.S.C. sections 3729 to 3733), the Sarbanes-Oxley Act for publicly traded companies, the Dodd-Frank Act for securities and financial fraud, OSHA whistleblower protections covering over 20 federal statutes, and Title VII of the Civil Rights Act for retaliation related to discrimination complaints.

Federal protections apply alongside Montana state protections, and employees may have the option to pursue claims under both systems. For a complete overview of these protections, see the Federal Whistleblower Laws page.

More Montana Laws

• Montana At-Will Employment Laws
• Montana Employee Monitoring Laws
• Montana Final Paycheck Laws
• Montana Workers Compensation Laws