Mont. Code Ann. » TITLE 39. LABOR · CHAPTER 2. THE EMPLOYMENT RELATIONSHIP · Part 9. Wrongful Discharge From Employment
Montana Code Annotated

Mont. Code Ann. § 39-2-903 (2026)

Definitions

✓ current as of May 2026
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  1. MCA Contents
  2. TITLE 39
  3. CHAPTER 2
  4. Part 9
  5. 39-2-903 Definitions

TITLE 39. LABOR

CHAPTER 2. THE EMPLOYMENT RELATIONSHIP

Part 9. Wrongful Discharge From Employment

Definitions

39-2-903. Definitions. In this part, the following definitions apply:

(1) "Constructive discharge" means the voluntary termination of employment by an employee because of a situation created by an act or omission of the employer which an objective, reasonable person would find so intolerable that voluntary termination is the only reasonable alternative. Constructive discharge does not mean voluntary termination because of an employer's refusal to promote the employee or improve wages, responsibilities, or other terms and conditions of employment.

(2) "Discharge" includes a constructive discharge as defined in subsection (1) and any other termination of employment, including resignation, elimination of the job, layoff for lack of work, failure to recall or rehire, and any other cutback in the number of employees for a legitimate business reason.

(3) "Employee" means a person who works for another for hire. The term does not include a person who is an independent contractor.

(4) "Fringe benefits" means the value of any employer-paid vacation leave, sick leave, medical insurance plan, disability insurance plan, life insurance plan, and pension benefit plan in force on the date of the termination.

(5) "Good cause" means any reasonable job-related grounds for an employee's dismissal based on:

(a) the employee's failure to satisfactorily perform job duties;

(b) the employee's disruption of the employer's operation;

(c) the employee's material or repeated violation of an express provision of the employer's written policies; or

(d) other legitimate business reasons determined by the employer while exercising the employer's reasonable business judgment. The legal use of a lawful product by an individual off the employer's premises during nonworking hours is not a legitimate business reason, unless the employer acts within the provisions of 39-2-313(3) or (4).

(6) "Leave of absence" means an employee's absence from work for a period of more than 5 consecutive working days for any reason other than holidays and vacations.

(7) "Lost wages" means the gross amount of wages that would have been reported to the internal revenue service as gross income on form W-2 and includes additional compensation deferred at the option of the employee.

(8) "Public policy" means a policy in effect at the time of the discharge concerning the public health, safety, or welfare established by constitutional provision, statute, or administrative rule.

History: En. Sec. 3, Ch. 641, L. 1987; amd. Sec. 3, Ch. 193, L. 1993; amd. Sec. 2, Ch. 117, L. 2021.

Notes of Decisions
Cited in 84 cases (15 in the last 5 years), 1989–2024 · leading case: Howard v. Conlin Furniture No. 2, Inc., 901 P.2d 116 (Mont. 1995).
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Howard v. Conlin Furniture No. 2, Inc., 901 P.2d 116 (Mont. 1995). · cites it 46× “Good cause is defined as follows in § 39-2-903, MCA: (5) "Good cause" means reasonable job-related grounds for dismissal based on a failure to satisfactorily perform job duties, disruption of the employer's operation, or other legitimate business reason.”
Meech v. Hillhaven West, Inc., 776 P.2d 488 (Mont. 1989). · cites it 20× “Section 39-2-903, MCA. Covered employees may sue for discharges defined as wrongful under the Act.”
Clark v. Eagle Sys., Inc., 927 P.2d 995 (Mont. 1996). · cites it 18× “" Section 39-2-903, MCA, defines the terms "discharge" and "constructive discharge" as follows: (1) "Constructive discharge" means the voluntary termination of employment by an employee because of a situation created by an act or omission of the employer which an objective,…”
Bird v. Cascade Cnty., 2016 MT 345 (Mont. 2016). · cites it 6× “The Act defines “good cause” as “reasonable job-related grounds for dismissal based on a failure to satisfactorily perform job duties, disruption of the 5 employer’s operation, or other legitimate business reason.”
Jarvenpaa v. Glacier Elec. Coop., Inc., 898 P.2d 690 (Mont. 1995). · cites it 24× “The court also concluded that the "retire or be fired" ultimatum was not a constructive discharge under § 39-2-903(1), MCA, because the choice between discharge and retirement cannot be said to be so intolerable that voluntary termination, in this case retirement, is the only…”
Becker v. Rosebud Operating Servs., Inc., 2008 MT 285 (Mont. 2008). · cites it 6× “” Section 39-2-903(5), MCA. A legitimate business reason is one that is “neither false, whimsical, arbitrary or capricious, and it must have some logical relationship to the needs of the business.”
Williams v. Plum Creek Timber Co., Inc., 2011 MT 271 (Mont. 2011). · cites it 12× “” Section 39-2-903(1), MCA. However, “[c]onstructive discharge does not mean voluntary termination because of an employer’s refusal to promote the employee *373 or improve wages, responsibilities, or other terms and conditions of employment.”
Cole v. Valley Ice Garden, L.L.C., 2005 MT 115 (Mont. 2005). · cites it 6× “”Section 39-2-903(5), MCA. VIG maintains that based on this definition, we have before upheld termination for “good cause” on the basis of poor job performance and we should do so here as well.”
Buck v. Billings Montana Chevrolet, Inc., 811 P.2d 537 (Mont. 1991). · cites it 8× “Good cause, as it pertains to this case, is defined in § 39-2-903(5), MCA, as "... reasonable job-related grounds for dismissal based on .”
Johnson v. Costco Wholesale, 2007 MT 43 (Mont. 2007). · cites it 4× “The District Court deferred ruling and then granted the motion while Costco was presenting its case-in-chief.”
Kestell v. Heritage Health Care Corp., 858 P.2d 3 (Mont. 1993). · cites it 9× “Under § 39-2-903(2), MCA, “discharge” includes resignation, layoff, job elimination and constructive discharge, which is defined in § 39-2-903(1), MCA, as the voluntary termination of employment by an employee because of a situation created .”
Moe v. Butte-Silver Bow Cnty., 2016 MT 103 (Mont. 2016). · cites it 5× “” Section 39-2-903(5), MCA. A legitimate business reason is one that is “not false, whimsical, arbitrary, or capricious and one that must have some logical relationship to the needs of the business.”
Show all 84 citing cases →
— Mont. Code Ann. § 39-2-903(1) — 12 cases
Jarvenpaa v. Glacier Elec. Coop., Inc., 898 P.2d 690 (Mont. 1995). “The court also concluded that the "retire or be fired" ultimatum was not a constructive discharge under § 39-2-903(1), MCA, because the choice between discharge and retirement cannot be said to be so intolerable that voluntary termination, in this case retirement, is the only…”
Williams v. Plum Creek Timber Co., Inc., 2011 MT 271 (Mont. 2011). “” Section 39-2-903(1), MCA. However, “[c]onstructive discharge does not mean voluntary termination because of an employer’s refusal to promote the employee *373 or improve wages, responsibilities, or other terms and conditions of employment.”
Bellanger v. Am. Music Co., 2004 MT 392 (Mont. 2004).
Howard v. Conlin Furniture No. 2, Inc., 901 P.2d 116 (Mont. 1995). “Good cause is defined as follows in § 39-2-903, MCA: (5) "Good cause" means reasonable job-related grounds for dismissal based on a failure to satisfactorily perform job duties, disruption of the employer's operation, or other legitimate business reason.”
Kestell v. Heritage Health Care Corp., 858 P.2d 3 (Mont. 1993). “Under § 39-2-903(2), MCA, “discharge” includes resignation, layoff, job elimination and constructive discharge, which is defined in § 39-2-903(1), MCA, as the voluntary termination of employment by an employee because of a situation created .”
— Mont. Code Ann. § 39-2-903(2) — 16 cases
Howard v. Conlin Furniture No. 2, Inc., 901 P.2d 116 (Mont. 1995). “Good cause is defined as follows in § 39-2-903, MCA: (5) "Good cause" means reasonable job-related grounds for dismissal based on a failure to satisfactorily perform job duties, disruption of the employer's operation, or other legitimate business reason.”
Clark v. Eagle Sys., Inc., 927 P.2d 995 (Mont. 1996). “" Section 39-2-903, MCA, defines the terms "discharge" and "constructive discharge" as follows: (1) "Constructive discharge" means the voluntary termination of employment by an employee because of a situation created by an act or omission of the employer which an objective,…”
Jarvenpaa v. Glacier Elec. Coop., Inc., 898 P.2d 690 (Mont. 1995). “The court also concluded that the "retire or be fired" ultimatum was not a constructive discharge under § 39-2-903(1), MCA, because the choice between discharge and retirement cannot be said to be so intolerable that voluntary termination, in this case retirement, is the only…”
Williams v. Plum Creek Timber Co., Inc., 2011 MT 271 (Mont. 2011). “” Section 39-2-903(1), MCA. However, “[c]onstructive discharge does not mean voluntary termination because of an employer’s refusal to promote the employee *373 or improve wages, responsibilities, or other terms and conditions of employment.”
Arnold v. Boise Cascade Corp., 856 P.2d 217 (Mont. 1993).
— Mont. Code Ann. § 39-2-903(3) — 5 cases
Tvedt v. Farmers Ins. Grp. of Companies, 2004 MT 125 (Mont. 2004).
Great Falls Clinic LLP v. Montana Eighth Jud. Dist. Court, 2016 MT 245 (Mont. 2016).
Burkhart v. Semitool, Inc., 2000 MT 201 (Mont. 2000).
Krebs v. Ryan Oldsmobile, 843 P.2d 312 (Mont. 1992).
Zier v. Hancock, 2008 MT 255 (Mont. 2008).
— Mont. Code Ann. § 39-2-903(4) — 2 cases
Meech v. Hillhaven West, Inc., 776 P.2d 488 (Mont. 1989). “Section 39-2-903, MCA. Covered employees may sue for discharges defined as wrongful under the Act.”
Timpano v. Cent. MT HRDC, 2022 MT 169 (Mont. 2022).
— Mont. Code Ann. § 39-2-903(5) — 56 cases
Bird v. Cascade Cnty., 2016 MT 345 (Mont. 2016). “The Act defines “good cause” as “reasonable job-related grounds for dismissal based on a failure to satisfactorily perform job duties, disruption of the 5 employer’s operation, or other legitimate business reason.”
Becker v. Rosebud Operating Servs., Inc., 2008 MT 285 (Mont. 2008). “” Section 39-2-903(5), MCA. A legitimate business reason is one that is “neither false, whimsical, arbitrary or capricious, and it must have some logical relationship to the needs of the business.”
Cole v. Valley Ice Garden, L.L.C., 2005 MT 115 (Mont. 2005). “”Section 39-2-903(5), MCA. VIG maintains that based on this definition, we have before upheld termination for “good cause” on the basis of poor job performance and we should do so here as well.”
Meech v. Hillhaven West, Inc., 776 P.2d 488 (Mont. 1989). “Section 39-2-903, MCA. Covered employees may sue for discharges defined as wrongful under the Act.”
Buck v. Billings Montana Chevrolet, Inc., 811 P.2d 537 (Mont. 1991). “Good cause, as it pertains to this case, is defined in § 39-2-903(5), MCA, as "... reasonable job-related grounds for dismissal based on .”
— Mont. Code Ann. § 39-2-903(6) — 1 case
Hager v. J.C. Billion, Inc., 2008 MT 167 (Mont. 2008).
— Mont. Code Ann. § 39-2-903(7) — 5 cases
Fenno v. Mountain West Bank, 2008 MT 267 (Mont. 2008).
Motarie v. N. Montana Jt. Refuse Disposal Dist., 907 P.2d 154 (Mont. 1995).
Wadsworth v. State, 911 P.2d 1165 (Mont. 1996).
Cartwright v. Scheels All Sports, Inc., 2013 MT 158 (Mont. 2013).
Dundas v. Winter Sports, Inc., 2017 MT 269 (Mont. 2017).
— Mont. Code Ann. § 39-2-903(l) — 1 case
Meech v. Hillhaven West, Inc., 776 P.2d 488 (Mont. 1989). “Section 39-2-903, MCA. Covered employees may sue for discharges defined as wrongful under the Act.”
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