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House committee hears support and opposition to bill to raise Montana minimum wage to $12.06
Summary
Representative Kortum presented House Bill 484 to raise Montana’s minimum wage to $12.06 an hour. Labor groups and students supported the increase, while restaurant and business groups opposed it, arguing automatic CPI indexing already raises the wage and the change would accelerate inflation and raise costs for small businesses.
Representative David Kortum opened the hearing on House Bill 484, which “will raise the minimum wage in Montana to $12.06,” and framed the proposal as a catch‑up to inflation since his first term in 2021.
Proponents included the Montana AFL‑CIO, tribal representatives and student groups. Amanda Frickel of the Montana AFL‑CIO told the committee that many workers earning the state minimum remain near the federal poverty line and urged passage. Patrick Yawake, speaking for several tribal communities, and Hope Morrison of the Associated Students of the University of Montana said a modest increase would make housing and college expenses more attainable for working Montanans and students.
Opponents included the Montana Restaurant Association and the Montana Chamber of Commerce, who argued the state’s Initiative 151 already provides annual CPI adjustments and cited concerns that a larger statutory increase would accelerate inflation and raise business costs. Brad Griffin of the restaurant association said many tipped service workers earn substantially more than the minimum once tips are included; the Department of Labor and Industry noted that wage reporting excludes tips. Chamber witnesses said mandated increases can reduce hours, eliminate jobs, or raise consumer prices.
Department of Labor officials gave data during the hearing: Commissioner Swanson referenced a live dashboard showing that roughly 4.1% of Montana workers were at the minimum wage and that the accommodation and food services sectors are the largest industries paying minimum wage. Swanson said about 24,620 workers were paid the current minimum wage in the data the department cited.
Committee members questioned fiscal and distributional impacts and asked the department for additional breakdowns by age and industry. No committee vote was recorded during the hearing; Representative Kortum asked for a do‑pass vote at the close of the hearing.
