The Independent Contractor Central Unit is located within the Department of Labor and Industry. The unit assures all independent contractors in Montana are in compliance with Montana workers' compensation laws; is responsible for evaluating independent contractor exemption certificate applications; and conducts investigates and issues decisions on employment relationships. The unit has six field representatives that perform on-site jobsite visits around Montana.
It allows an independent contractor to waive all their rights and benefits that would otherwise be provided by a workers’ compensation insurance policy. If an independent contractor were to suffer a work-related injury or occupational disease while performing the occupations specified on the certificate, they would not be eligible for workers’ compensation benefits. The certificate concludes the person’s status is conclusively presumed to be that of an independent contractor. Refer to MCA, 39-71-417(7).
Self-elected workers' compensation insurance coverage provides wage-loss and medical benefits to an independent contractor should a work-related injury or occupational disease occur.
No. Montana law specifically requires Montana workers’ compensation insurance coverage under perform an online search or call our office at (406) 444-7734. To verify self-elected workers’ compensation insurance coverage, request proof of coverage from the independent contractor or call their workers’ compensation insurance agency.
It could result in the state treating the independent contractor as an employee of the hiring agent. This means the hiring agent may be responsible for claims related to work-related injuries or occupational diseases and incur penalties from the Uninsured Employers’ Fund. Labor agreements and issuance of 1099s do not make a person an independent contractor.
Yes. Montana law prohibits employers from avoiding their responsibility to provide workers' compensation insurance coverage for employees. An employer may not require an employee through coercion, misrepresentation, or fraudulent means to adopt independent contractor status or exert control to a degree that destroys the independent contractor relationship. An employer who violates a provision of the law is subject to a fine to be assessed by the department of up to $5,000 for each violation. Refer to MCA, 39-71-419(2).
An independent contractor in Montana is a person who renders service in the course of an occupation and:
(a) has been and will continue to be free from control or direction over the performance of the services, both under a contract and in fact; and
(b) is engaged in an independently established trade, occupation, profession or business.Additionally, an independent contractor must obtain either an independent contractor exemption certificate or self-elected coverage under a Montana workers’ compensation insurance policy. Refer to MCA, 39-71-417.
A person who regularly and customarily performs services at a location other than the person's own fixed business location must obtain an independent contractor exemption certificate unless the person has self-elected workers’ compensation insurance coverage.
“Person” means:All persons in the trucking industry, regardless of their business structure, must obtain either an independent contractor exemption certificate or self-elected workers’ compensation coverage. Refer to MCA, 39-71-117(4).
Persons not required to obtain an independent contractor exemption certificate or self-elected workers’ compensation insurance coverage may voluntarily apply.
A person who violates a provision of the law is subject to a fine to be assessed by the department of up to $5,000 for each violation. Refer to MCA, 39-71-419(1).
No. The independent contractor exemption certificate is not a license and does not ensure quality of work.
Yes. All persons using a business name other than their personal name are required to register. You may contact the Secretary of State’s office at (406) 444-3665 or visit their website. Please complete this step before submitting your completed independent contractor exemption certificate application.
No. However, you are still required to purchase workers' compensation insurance coverage for all your employees.
You may contact any workers’ compensation insurer authorized to write Montana workers’ compensation insurance policies; or contact Montana State Fund at (406) 495-5000 or 1-800-332-6102.
Yes. Ensure that anyone you contract with is also in compliance with the workers’ compensation laws. Contact a temporary employment agency in your area.Montana state government does not license construction contractors. However, you may verify professional and occupational licensing with the Business Standards Division. You may also contact the city or county in which you are performing your services to verify their requirements.
The review of the business documentation allows the department to verify that those applying for an independent contractor exemption certificate are truly engaged in an independently established trade, occupation, profession, or business.
Department of Labor and Industry Independent Contractor Central Unit PO Box 8011 Helena, MT 59604-8011
Processing time typically takes about 10-15 business days, sometimes longer depending on the volume of applications that the department receives. However, the approval or denial of your application can take up to 30 days.
The department will prioritize process your completed independent contractor exemption certificate application if you ship it overnight using FEDEX or UPS to the physical address.
Department of Labor and Industry Registration Section 301 South Park Avenue, 5th Floor Helena, MT 59601Same day processing is not guaranteed. Applications sent by USPS are not shipped to our physical address, therefore will not be expedited.
Upon approval of your independent contractor exemption certificate application, you will receive a certificate, wallet-sized card, and window decal in the mail. You may search for your independent contractor exemption certificate online for approval status.
You will receive a department notice in the mail specifying what your independent contractor exemption certificate application is missing. If you do not respond or your application is missing subsequent information, you will receive a second notice. You have 30 days from the date of the first department notice to complete the application process or your application will be denied.
If you are unable to complete the application process within 30 days, you will receive a department notice in the mail explaining the denial of your independent contractor exemption certificate application. You have up to 6 months from the date the department initially received your application to provide the missing information; otherwise, you must reapply and pay the $125 non-refundable application fee.
Yes. There is no additional application fee to make changes to an existing independent contractor exemption certificate.
Business Structure – Please call our office at (406) 444-7734 because you may need to complete a new application and waiver form. If changing to a partnership, you must provide a partnership agreement.
Phone number - Mail, email, phone, or fax us a request in writing to make those changes. Mailing address - Mail, email, phone, or fax us a request in writing to make those changes.Occupations (remove or add) – You may call our office for a pre-printed application form for changing occupations. The application form must include all of the occupations that you wish to have listed on your certificate. You may need to provide 15 points of business documentation for any newly added occupations.
Business Name – You may call our office for an application form for changing your business name. You may need to provide updated business documentation to verify your new business.
Approximately 60 days before your independent contractor exemption certificate expires, the department will mail you a pre-printed renewal application to the mailing address that you last provided.
No. The independent contractor exemption certificate is issued to the person whose name is on the certificate and cannot be transferred.
