Montana’s Legal Employment and Government Accountability Law (LEGAL Act) Takes Effect Today

  • — July 01 2025

Helena, Mont. - The Montana Department of Labor & Industry (DLI) announced today it will begin enforcing the Legal Employment and Government Accountability Law, a new state law that requires employers to verify the lawful employment status of all workers prior to hiring.

House Bill 226, sponsored by Representative Courtnay Sprunger (R-Kalispell), was signed into law by Governor Greg Gianforte on May 1. The law, known as the LEGAL Act, has an effective date of July 1, 2025 and authorizes DLI to conduct employer audits and investigations—both through random selection and in response to citizen complaints.

“This legislation gives the State of Montana critical enforcement tools to ensure that employers are verifying the lawful employment status of every worker—without growing government headcount,” said Labor Commissioner Sarah Swanson. “It targets those who knowingly violate the law and shields those who play by the rules.”

The LEGAL Act:

  • Requires employers to verify work authorization using either Form I-9 documentation or E-Verify before a new employee begins work;
  • Establishes a tiered penalty structure, including escalating fines and potential license suspension for repeat violators;
  • Protects employers who act in good faith and comply with federal law; and
  • Creates a special revenue account to support enforcement and education efforts.

“Our goal is simple,” Swanson added. “Support lawful employment, protect Montana workers, and ensure that those seeking to exploit the system are no longer able to do so.”

Governor Gianforte praised the law as a tool to support employers who follow the law and uphold a level playing field for Montana businesses at a recent 56 County Tour stop with Rep. Sprunger.

Employers are encouraged to review the requirements of the law and ensure compliance. DLI will begin outreach to help businesses understand their responsibilities under HB 226, and stands ready to assist with questions related to E-Verify or acceptable I-9 documentation.

Report a Concern or Learn More About Lodging a Complaint with ESD

Employers or members of the public with questions—or wishing to report potential violations can visit the Employment Standards Division complaints page or call (406) 444-6543.

Contact

Sam Loveridge: Public Information Officer, Department of Labor and Industry