Montana Governor Greg Gianforte has signed legislation (House Bill 254) that makes multiple amendments to the state's Wrongful Discharge from Employment Act (WDEA). House Bill 254 is effective immediately.
Background:
The WDEA requires employers to have "good cause" to discharge an employee after the employee completes an initial probationary period. If an employer does not establish a specific probationary period, or provides that there is no probationary period prior to or at the time of hire, the probationary period is assumed to be six months from the date of hire.
"Good cause" means reasonable job-related grounds for termination based on failure to satisfactorily perform job duties, disruption of the employer's operation, or other legitimate business reason.
Probationary period extension:
House Bill 254 extends the WDEA's default probationary period from six months to 12 months. Employers are also able to extend their probationary period prior to the expiration of the original probationary period, as long as the original probationary period plus any extensions does not exceed 18 months.
Expanded definition of "good cause:"
House Bill 254 expands the definition of "good cause" to include discharge following an employee's significant or repeated violation of the employer's written policies or other legitimate and reasonable business reasons determined by the employer while exercising reasonable business judgment.
Additionally, employers have broader discretion when deciding to discharge a managerial or supervisory employee.
Notification requirements:
If the employer maintains written internal procedures under which an employee may appeal a discharge, the employer must provide the employee with written or electronic copies of such procedures within 14 days (previously the notice was due within seven days).
Complaints:
House Bill 254 reduces the amount of time employees have to serve the employer after filing a complaint, from three years to within six months.
Compliance Recommendations:
Montana employers should review their policies and procedures to ensure compliance with House Bill 254. Please contact your dedicated service professional with any questions.