EMPLOYEE HANDBOOK

State of Montana – Comprehensive, Statutorily-Compliant Template

[// GUIDANCE: This template is intentionally robust and formatted for immediate attorney review and customization. All bracketed items—e.g., [COMPANY LEGAL NAME]—require client-specific input. Remove all guidance comments prior to issuance of the final handbook.]

TABLE OF CONTENTS

1. Document Header
2. Definitions
3. Operative Provisions
   3.1 Employment Classifications & Status
   3.2 Probationary Period (Montana WDEA)
   3.3 Wage & Hour Compliance
   3.4 Employee Benefits
   3.5 Leaves of Absence
4. Representations & Warranties
5. Covenants & Restrictions
6. Default & Remedies (Disciplinary Process)
7. Risk Allocation
8. Dispute Resolution
9. General Provisions
10. Receipt & Acknowledgment
11. Exhibits & Schedules

1. DOCUMENT HEADER

1.1 Title & Parties.
This Employee Handbook (the “Handbook”) is promulgated by [COMPANY LEGAL NAME], a [STATE OF INCORPORATION] [ENTITY TYPE] (the “Company”), for the benefit of its employees (“Employee” or “Employees”).

1.2 Effective Date.
This Handbook is effective as of [EFFECTIVE DATE] (the “Effective Date”) and supersedes all prior handbooks, manuals, and employment policy statements, whether written or oral.

1.3 Governing Law & Jurisdiction.
This Handbook shall be construed in accordance with the laws of the State of Montana, including but not limited to the Wrongful Discharge from Employment Act (“WDEA”), Mont. Code Ann. § 39-2-901 et seq., and the Montana Wage & Hour statutes, Mont. Code Ann. § 39-3-401 et seq. Venue for any judicial proceeding arising hereunder shall lie exclusively in the state courts of [COUNTY, MT].

[// GUIDANCE: If optional arbitration is selected, complete Section 8.2 and revise Section 1.3 accordingly.]

2. DEFINITIONS

For purposes of this Handbook, capitalized terms shall have the meanings set forth below. All section cross-references refer to this Handbook unless otherwise indicated.

“Company Property” – All tangible and intangible property, including equipment, files, data, inventions, and intellectual property, owned, licensed, or otherwise controlled by the Company.

“Confidential Information” – Any non-public information relating to the Company’s business, customers, finances, trade secrets, or personnel, whether oral, written, electronic, or otherwise, consistent with the Montana Uniform Trade Secrets Act.

“Employee” – Any individual classified under Section 3.1 who performs services for the Company in exchange for wages or salary.

“Exempt Employee” / “Non-Exempt Employee” – As defined by the Fair Labor Standards Act, 29 U.S.C. § 201 et seq., and corresponding Montana regulations.

“Good Cause” – As set forth in Mont. Code Ann. § 39-2-903(5), meaning reasonable job-related grounds based on an Employee’s failure to satisfactorily perform job duties, misconduct, or other legitimate business reasons.

“Handbook Acknowledgment” – The executed form attached hereto as Exhibit A, used to confirm an Employee’s receipt and understanding of this Handbook.

“Probationary Period” – The initial period of employment described in Section 3.2.

“Workweek” – A fixed and recurring period of 168 hours (7 consecutive 24-hour periods) beginning at [DAY/TIME].

[// GUIDANCE: Add or delete definitions as necessary; maintain alphabetical order.]

3. OPERATIVE PROVISIONS

3.1 Employment Classifications & Status

a. Full-Time: Employees regularly scheduled to work [30/40] hours or more per Workweek.
b. Part-Time: Employees scheduled to work fewer than [30/40] hours per Workweek.
c. Temporary: Employees engaged for a specific project or limited duration not to exceed [X] months.
d. Exempt vs. Non-Exempt: Determined in accordance with federal and Montana law. Non-Exempt Employees are entitled to overtime compensation as described in Section 3.3(c).

3.2 Probationary Period (Montana-Specific)

a. Length. All newly hired Employees shall serve a [MAX 6-MONTH] probationary period (“Probationary Period”).
b. Extension. The Probationary Period may be extended once, in writing, by mutual agreement of the Company and Employee for up to an additional [X] months.
c. Termination During Probation. Either party may terminate the employment relationship at any time during the Probationary Period for any lawful reason, subject to applicable anti-discrimination laws.
d. Good Cause Requirement Post-Probation. Upon successful completion of the Probationary Period, termination shall be governed by the “Good Cause” standard under Montana WDEA, § 39-2-901 et seq.

3.3 Wage & Hour Compliance

a. Minimum Wage. The Company shall pay at least the greater of (i) the federal minimum wage or (ii) the Montana minimum wage as annually adjusted by the Montana Department of Labor & Industry (“DLI”). Current Montana minimum wage: [$___/hour].
b. Paydays. Employees shall be paid [WEEKLY/BI-WEEKLY/SEMI-MONTHLY] on [DAY] via [DIRECT DEPOSIT/PAPER CHECK], in accordance with Mont. Code Ann. § 39-3-204.
c. Overtime. Non-Exempt Employees shall receive 1.5× their regular rate for hours worked in excess of 40 in a Workweek, unless an exemption applies.
d. Timekeeping. Accurate recording of hours worked is mandatory. Alteration or falsification of time records may result in discipline up to and including termination.
e. Deductions. Only lawful deductions (e.g., taxes, court-ordered garnishments, Employee-authorized deductions) will be made from an Employee’s paycheck.

3.4 Employee Benefits

a. Health Insurance. [DESCRIBE PLAN OR “Not Offered”]; eligibility begins [WAITING PERIOD] post-hire.
b. Retirement Plan. [401(k)/SIMPLE IRA/None] with [EMPLOYER MATCH DETAILS].
c. Workers’ Compensation. Coverage is provided in accordance with Mont. Code Ann. Title 39, Ch. 71. Employees must immediately report workplace injuries to [TITLE].
d. Unemployment Insurance. Contributions and benefits governed by Mont. Code Ann. Title 39, Ch. 51.

3.5 Leaves of Absence

[// GUIDANCE: Federal FMLA applies only if the employer has ≥50 employees within a 75-mile radius. Omit or retain accordingly.]

a. Family & Medical Leave (FMLA). Eligible Employees are entitled to up to 12 workweeks of unpaid leave in a 12-month period for qualifying reasons, consistent with 29 U.S.C. § 2601 et seq.
b. Pregnancy & Childbirth Leave. Employers must provide a “reasonable leave of absence” and job reinstatement under Mont. Code Ann. §§ 49-2-310, -311.
c. Military Leave. Leave and reemployment rights governed by USERRA and Mont. Code Ann. § 10-1-1003.
d. Jury Duty. Paid leave for required jury service; Employees must provide summons as soon as practicable.
e. Witness & Crime Victim Leave. Unpaid leave for Employees subpoenaed or requested to appear in criminal proceedings.
f. Voting Leave. If an Employee lacks 2 consecutive hours outside of working time during which polls are open, the Company will provide paid time off to vote.
g. Domestic Violence Leave. Employees may use accrued paid leave or unpaid leave to address issues related to domestic violence, stalking, or sexual assault.
h. Bereavement Leave. Up to [X] days of [PAID/UNPAID] leave per bereavement event.
i. Paid Sick Leave. [POLICY DETAILS OR “Not Currently Offered”]
j. Other Leave. Additional discretionary leaves may be granted at the Company’s sole discretion.

4. REPRESENTATIONS & WARRANTIES

4.1 Employee Representations. Each Employee represents that:
a. He or she possesses the legal right to work in the United States and will provide appropriate documentation at hire;
b. Information supplied in any employment application or hiring documentation is true and complete; and
c. He or she is not bound by any agreement that would impair the Employee’s ability to perform job duties for the Company.

4.2 Company Warranty Disclaimer. Nothing herein shall be construed as a guarantee of continued employment beyond the requirements of the Montana WDEA or as a guarantee of any specific benefit level.

5. COVENANTS & RESTRICTIONS

5.1 Confidentiality. Employees shall not, during or after employment, disclose or use Confidential Information except as necessary in the ordinary course of Company business.
5.2 Return of Company Property. Upon separation, Employees must return all Company Property immediately.
5.3 Conflicts of Interest. Employees must disclose any potential conflict to [TITLE] and avoid activities that materially interfere with their duties.
5.4 Outside Employment. Prior written approval is required for outside employment that overlaps scheduled hours or competes with the Company.
5.5 Workplace Conduct. Harassment, discrimination, workplace violence, possession of illegal drugs, and use of Company resources for illegal purposes are strictly prohibited.
5.6 Technology & Social Media. Employees shall comply with the [INFORMATION SECURITY] policy attached as Exhibit B.

6. DEFAULT & REMEDIES (DISCIPLINARY PROCESS)

6.1 Progressive Discipline. The Company may utilize the following escalating, non-exclusive measures:
i. Verbal Warning;
ii. Written Warning;
iii. Final Written Warning or Suspension;
iv. Termination for Good Cause (post-Probationary Period).
6.2 Immediate Termination. The Company reserves the right to bypass progressive steps for egregious conduct (e.g., violence, theft, gross misconduct).
6.3 Appeal. Employees may appeal disciplinary actions in writing to [TITLE/HR COMMITTEE] within [X] calendar days.

7. RISK ALLOCATION

7.1 Indemnification by Employee

To the fullest extent permitted by law, Employee shall indemnify and hold harmless the Company, its affiliates, and their respective directors, officers, and employees from and against any losses, damages, or claims arising out of the Employee’s willful misconduct, gross negligence, or unlawful acts (“Covered Conduct”).

7.2 Limitation of Liability

Except for Covered Conduct or obligations that cannot be limited by law, each party’s aggregate liability to the other under this Handbook shall not exceed the statutory limits of liability under applicable Montana law.

7.3 Insurance

The Company maintains general liability, workers’ compensation, and [EMPLOYMENT PRACTICES LIABILITY] insurance.

7.4 Force Majeure

The Company shall not be liable for any delay or failure to perform due to acts of God, pandemics, governmental action, or other events outside its reasonable control.

8. DISPUTE RESOLUTION

8.1 Internal Complaint Procedure

Employees are encouraged to resolve workplace disputes promptly by reporting issues to [DIRECT SUPERVISOR], followed by [HUMAN RESOURCES], and finally [EXECUTIVE MANAGEMENT] if necessary.

8.2 Arbitration (Optional)

[OPTION A – INSERT TO ACTIVATE ARBITRATION]
Subject to Employee’s voluntary election by signing Exhibit C, any dispute arising out of or relating to employment with the Company shall be resolved by binding arbitration administered by the American Arbitration Association (“AAA”) under its Employment Arbitration Rules. Judgment on the award may be entered in the state courts identified in Section 1.3.

[// GUIDANCE: Remove Section 8.2 entirely if arbitration is not selected.]

8.3 Jury Trial Waiver

To the extent permitted by the Montana Constitution, and except where arbitration is elected or prohibited, the parties knowingly and voluntarily waive their right to a trial by jury in any judicial proceeding arising out of or relating to this Handbook.

8.4 Injunctive Relief (Limited)

The Company may seek temporary injunctive relief only to prevent imminent, irreparable harm arising from breach of confidentiality or intellectual-property obligations, subject to judicial review under Montana law.

9. GENERAL PROVISIONS

9.1 Amendment & Waiver. The Company reserves the right to amend, modify, or discontinue any policy at any time, consistent with applicable law. No waiver shall be effective unless in writing and signed by [AUTHORIZED OFFICER].
9.2 Assignment. Employee may not assign any rights or delegate any duties without prior written consent of the Company.
9.3 Severability. If any provision is held invalid or unenforceable, the remaining provisions shall remain in full force.
9.4 Integration. This Handbook, together with all executed Exhibits, constitutes the entire understanding between the Company and Employee regarding the matters herein and supersedes all prior statements, except as required by Montana WDEA.
9.5 Electronic Signatures. Electronic signatures shall be deemed originals for all purposes.
9.6 Successors & Assigns. This Handbook is binding upon and inures to the benefit of the parties and their respective successors and permitted assigns.
9.7 Counterparts. The Handbook Acknowledgment may be executed in multiple counterparts.

10. RECEIPT & ACKNOWLEDGMENT

EMPLOYEE ACKNOWLEDGES THAT HE OR SHE HAS RECEIVED, READ, UNDERSTOOD, AND AGREES TO COMPLY WITH THE POLICIES CONTAINED IN THIS HANDBOOK, AS AMENDED FROM TIME TO TIME.

[SIGNATURE BLOCK]

Employee Name: ____
Employee Signature: ____ Date: _

Company Representative: ___ Date: _

11. EXHIBITS & SCHEDULES

• Exhibit A – Handbook Acknowledgment
• Exhibit B – Information Security & Acceptable Use Policy
• Exhibit C – Mutual Arbitration Agreement (Optional)
• Schedule 1 – State & Federal Employment Law Posters

Exhibit A

EMPLOYEE HANDBOOK ACKNOWLEDGMENT
I, [EMPLOYEE NAME], acknowledge receipt of the [COMPANY LEGAL NAME] Employee Handbook dated [EFFECTIVE DATE] and agree to abide by its terms.

Signature: ____ Date: _

[// GUIDANCE: Exhibits B and C should be drafted separately to client specifications.]