SENATE BILL NO. 4
INTRODUCED BY D. GRIMES
AN ACT CLARIFYING THAT DURING A PROBATIONARY PERIOD, EMPLOYMENT MAY BE TERMINATED FOR ANY REASON OR FOR NO REASON; CREATING A PRESUMPTIVE PROBATIONARY PERIOD; CLARIFYING THAT THE TERMINATION OF NONPROBATIONARY EMPLOYMENT MUST BE FOR CAUSE; AMENDING SECTIONS 39-2-902, 39-2-904, AND 39-2-905, MCA; AND REPEALING SECTION 39-2-503, MCA.
WHEREAS, in Whidden v. John S. Nerison, Inc., 1999 MT 110, 294 Mont. 346, 981 P.2d 271 (1999), the Montana Supreme Court held that the at-will employment statute, section 39-2-503, MCA, had been impliedly repealed by the Wrongful Discharge From Employment Act, Title 39, chapter 2, part 9, MCA.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 39-2-902, MCA, is amended to read:
"39-2-902. Purpose. This part sets forth certain rights and remedies with respect to wrongful discharge. Except as
limited in this part, employment having no specified term may be terminated at the will of either the employer or the
employee on notice to the other for any reason considered sufficient by the terminating party. Except as provided in
39-2-912, this part provides the exclusive remedy for a wrongful discharge from employment."
Section 2. Section 39-2-904, MCA, is amended to read:
"39-2-904. Elements of wrongful discharge -- presumptive probationary period. (1) A discharge is wrongful only if:
(1)(a) it was in retaliation for the employee's refusal to violate public policy or for reporting a violation of public policy;
(2)(b) the discharge was not for good cause and the employee had completed the employer's probationary period of
employment; or
(3)(c) the employer violated the express provisions of its own written personnel policy.
(2) (a) During a probationary period of employment, the employment may be terminated at the will of either the employer or the employee on notice to the other for any reason or for no reason.
(b) If an employer does not establish a specific probationary period or provide that there is no probationary period prior to or at the time of hire, there is a probationary period of 6 months from the date of hire."
Section 3. Section 39-2-905, MCA, is amended to read:
"39-2-905. Remedies. (1) If an employer has committed a wrongful discharge, the employee may be awarded lost
wages and fringe benefits for a period not to exceed 4 years from the date of discharge, together with interest thereon on the
lost wages and fringe benefits. Interim earnings, including amounts the employee could have earned with reasonable
diligence, must be deducted from the amount awarded for lost wages. Before interim earnings are deducted from lost
wages, there must be deducted from the interim earnings any reasonable amounts expended by the employee in searching
for, obtaining, or relocating to new employment.
(2) The employee may recover punitive damages otherwise allowed by law if it is established by clear and convincing evidence that the employer engaged in actual fraud or actual malice in the discharge of the employee in violation of 39-2-904(1)(a).
(3) There is no right under any legal theory to damages for wrongful discharge under this part for pain and suffering, emotional distress, compensatory damages, punitive damages, or any other form of damages, except as provided for in subsections (1) and (2)."
Section 4. Repealer. Section 39-2-503, MCA, is repealed.
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