Sole Proprietor: Excluded from coverage/may elect to be included. If included the rating payroll used is banded from a published minimum to a calculated maximum of 1.5 x the State Average Weekly Wage x 52. $10,800 min / $52,399 max as of 7-1-2013. (As near we can calculate the maximum based on Montana published SAWW for 2013 of $671.78). $10,800 is the minimum as of 7-1-15. You can look up the SAWW at the Montana Department of Labor and Industry.
Partners: Excluded from coverage/may elect to be included. If included the rating payroll for partners is banded from a published minimum to a calculated maximum of 1.5 x the State Average Weekly Wage x 52. $10,800 min / $52,399 max as of 7-1-2013. (As near we can calculate the maximum based on Montana published SAWW for 2013 of $671.78). $10,800 is the minimum as of 7-1-15. You can look up the SAWW at the Montana Department of Labor and Industry.
Corporate Officers: Included in coverage/may elect to be exempt. When included the rating payroll used is banded between a published minimum to a calculated maximum of 1.5 x the State Average Weekly Wage x 52. $10,400 min / $52,399 max as of 7-1-2013. (As near we can calculate the maximum based on Montana published SAWW for 2013 of $671.78). $10,400 is the minimum as of 7-1-15. You can look up the SAWW at the Montana Department of Labor and Industry.
LLC Members: Excluded from coverage/may elect to be included. When included the rating payroll they are treated as an executive officer if they are managers of a manager managed LLC. If they are a member managed LLC then they are treated as sole proprietors/partners as of 7-1-2013.
A Note About Forms: Be sure to contact your insurance company for information about additional forms they may use for exclusion or inclusion of coverage.
Contractors: Before employers hire someone who is not an employee (an independent contractor, or IC), make sure the IC has an IC Exemption Certificate issued by the Montana Department of Labor and Industry or proof of workers’ compensation insurance. It is the employer's responsibility to determine that the IC has this documentation. Without it, policyholders may be held responsible for claims on injuries or occupational diseases, and for payment of premium on their wages.
Special Notes: Exempted employments may include:
Sole proprietors, working members of a partnership, working members of a limited liability partnership and working members of a member-managed limited liability company.
Dependent members of an employer’s family or spouse for whom an exemption may be claimed by the employer under the Federal Internal Revenue Code. This provision applies only to sole proprietorships and partnerships.
Household or domestic employees whose typical duties include house cleaning and yard work. (Employees whose duties include home health care or domiciliary care are not household or domestic employees.)
Casual employment that is not part of the usual business of the employer. Part-time, short-term or occasional employees who perform duties that are part of the employer’s usual business are not casual employees.
Persons working in return for aid or sustenance only.
Amateur athletic officials, including a timer, referee, umpire or judge.
Real estate, securities or insurance salespersons paid only by commission with no guarantee of minimum earnings.
Direct home sellers of consumer products.
Newspaper carriers who deliver singles or bundles of newspapers and have acknowledged no coverage in writing.
Freelance correspondents who submit articles or photos for publication, are paid for each item, and have acknowledged no coverage in writing.
Licensed barbers or cosmetologists who contract with cosmetology establishments.
Petroleum land professionals.
Licensed jockeys riding in a horse race, from the time the jockey reports to the scale room through the time that the jockey is weighed out after a race. The jockey must acknowledge no coverage in writing.
Licensed trainers, assistant trainers, exercise persons or pony persons while on the grounds of a licensed horse race meet.
Employees who are not residents of Montana and whose primary duties are not regularly conducted within Montana.
If a nonresident employee performs most of their work outside Montana, the employer must comply with the coverage requirements where the employee resides or performs work. EXCEPTION: Employers working in the construction industry must provide Montana coverage for all employees, both resident and nonresident, while working in Montana.
Officers or managers of a private, nonprofit, irrigation ditch company or water user cooperative, corporation, association or organization.
An ordained, commissioned or licensed minister of a church or a member of a religious order.
Persons providing companionship services or respite care for individuals who cannot care for themselves. The person providing the services or care must be employed directly by a family member or a legal guardian.
Volunteer workers. However, the following volunteer workers are not exempt:
Air search and rescue volunteers employed by the Montana Department of
Transportation (Section 67-2-105, MCA)
Volunteer reserve or auxiliary officers providing service to a local law enforcement
agency (Section 7-32-203, MCA)
Volunteer firefighters, except those who provide service to a second-class city.
Professional athletes on a team or club engaged in contact sports. Contact sports include but are not limited to football, hockey, roller derby, rugby, lacrosse, wrestling, and boxing.
Corporate officers or managers of a manager-managed limited liability company (LLC) who meet certain criteria. Contact your team’s customer service specialist for specific criteria. NOTE: Corporate officers or limited liability company managers who fail to satisfy any of the elective criteria, and who receive pay from the corporation or limited liability company for the performance of ordinary duties, are automatically covered.
A person performing the services of an intrastate or interstate common or contract motor carrier when hired by an individual or entity who meets the definition of a freight broker.
Experience Rating Eligibility: Employers in Montana will receive an experience modification rate or EMR when they meet one of these triggers:
$5,000 in policy premium is generated during the last year or last two years.
$2,500 is the average policy premium generated for more than two years.
Montana Workers Compensation Subrogation: Montana Statute 39-71-412 is the Statute of Subrogation. This is where you can find and read about subrogation or workers comp for the State of Montana. 39-71-412 is titled "Liability of third party other than employer or fellow employee -- additional cause of action." This statute is available to read online and we have provided a direct link below for your use.
Montana Workers Working In Other States; Other States Workers Working In Montana, Extraterritorial, Reciprocity and Non-Compliance: When Montana workers are working temporarily in another state, then workers compensation coverage for that worker is governed by the extraterritorial provisions found in Montana statutes. When allowed, extraterritorial provisions allow benefits for an injured worker to apply as if the worker was in their primary state. Not all states provide Extraterritorial Provisions. It's reciprocity that governs coverage for a worker from another state who is working temporarily in Montana. Everyone involved in the construction industry must have Montana coverage. Construction Industry Defined. Compliance of workers compensation laws varies from state to state and it is important for an employer with workers performing duties in other states to be aware of the specific state rules that govern their coverage. We've provided the below general information about extraterritorial and reciprocity as a basic guide. Please contact your state authority with your specific questions concerning this topic!
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Information on this page is provided only as a reference. While we strive to mantain accurate information on this site please realize workers compensation laws are complicated and subject to change at any time. No warranty as to the accuracy or completeness of this information is provided or to be implied. You must verify this data before use with the individual governing authority for this state. If you need help with a workers compensation problem or have a specific situation or question please contact our office. Otherwise please consult your states governing authority or an attorney in your state of residency for assistance.