What is The Montana Wrongful Discharge from Employment Act?
Montana’s Wrongful Discharge Law: Employee Rights and Employer Responsibilities
Montana's wrongful discharge statute provides the following:
1. An employee can be discharged only for good cause after completing the employer's probationary period; however, during an employee's probationary period, employment may be terminated for any reason considered sufficient by the terminating party;
2. Employers that have written personnel policies must follow those policies in making a discharge;
3. An employee who wins a wrongful discharge suit may collect lost wages and fringe benefits for a period of up to four years from the date of discharge; and
4. Arbitration is encouraged to save the expense of lawsuits, and an employer may benefit if it offers arbitration to a discharged employee. Arbitration is not typically used for non-unionized employees. If arbitration is to be used, it must be stated as such in the grievance policy and be understood that it is final and binding. A discharged employee must be notified of the internal grievance policy and be given a copy of the policy, within 7 days of termination and exhaust the grievance process, prior to filing a Wrongful Discharge from Employment claim. If an employer fails to provide a copy of the grievance policy within 7 days, the terminated employee need
not exhaust their internal grievance process prior to filing a claim. The Wrongful Discharge from Employment Act does not apply to unionized or contracted employees. For unionized employees, the grievance process found in the collective-bargaining agreement is the exclusive remedy for a wrongful discharge. By enacting this statute, Montana has eliminated employment-at-will as to discharges, since an employee can no longer be terminated merely at the will of the employer. Wrongful discharge will exist in three types of situations:
1. If the discharge is in retaliation for refusing to violate public policy or reporting a violation by the employer;
2. If the discharge is not for good cause and the employee has completed the probationary period;
3. If the discharge involved an employer's violation of its own written personnel policies.
The good cause requirement for discharges means that employers must be prepared to document all terminations. 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 39-2-9.
1. An employee can be discharged only for good cause after completing the employer's probationary period; however, during an employee's probationary period, employment may be terminated for any reason considered sufficient by the terminating party;
2. Employers that have written personnel policies must follow those policies in making a discharge;
3. An employee who wins a wrongful discharge suit may collect lost wages and fringe benefits for a period of up to four years from the date of discharge; and
4. Arbitration is encouraged to save the expense of lawsuits, and an employer may benefit if it offers arbitration to a discharged employee. Arbitration is not typically used for non-unionized employees. If arbitration is to be used, it must be stated as such in the grievance policy and be understood that it is final and binding. A discharged employee must be notified of the internal grievance policy and be given a copy of the policy, within 7 days of termination and exhaust the grievance process, prior to filing a Wrongful Discharge from Employment claim. If an employer fails to provide a copy of the grievance policy within 7 days, the terminated employee need
not exhaust their internal grievance process prior to filing a claim. The Wrongful Discharge from Employment Act does not apply to unionized or contracted employees. For unionized employees, the grievance process found in the collective-bargaining agreement is the exclusive remedy for a wrongful discharge. By enacting this statute, Montana has eliminated employment-at-will as to discharges, since an employee can no longer be terminated merely at the will of the employer. Wrongful discharge will exist in three types of situations:
1. If the discharge is in retaliation for refusing to violate public policy or reporting a violation by the employer;
2. If the discharge is not for good cause and the employee has completed the probationary period;
3. If the discharge involved an employer's violation of its own written personnel policies.
The good cause requirement for discharges means that employers must be prepared to document all terminations. 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 39-2-9.