Montana Workers’ Comp Exemption
We file workers’ compensation exemptions for Montana sole proprietors, LLC members, and corporate officers. Send us your details and we’ll confirm whether you qualify and handle the filing.
When coverage is required in Montana
Montana requires nearly every employer with one or more employees to carry workers' compensation coverage (Plan No. 1, 2, or 3 under the Montana Workers' Compensation Act, Title 39, chapter 71, MCA). There is no minimum-employee-count threshold that exempts a true employer with employees. Montana's distinguishing feature is its Independent Contractor Exemption Certificate (ICEC) program: a worker hired by a business who wants to be treated as an independent contractor (rather than an employee requiring coverage) must either (a) hold a state-issued ICEC, or (b) carry a self-elected workers' comp policy covering themselves. This is a real state-run registry, not just a policy endorsement.
Who can be excluded in Montana
Sole proprietors
A sole proprietor with no employees is not required to cover themselves. However, if the sole proprietor works as a contractor for another business (i.e., performs services for hire), that other business will treat them as an employee requiring coverage UNLESS the sole proprietor holds an ICEC or has self-elected coverage. So in practice, working sole proprietors in Montana commonly obtain an ICEC to avoid being pulled onto a hiring business's payroll/policy.
Partners
Same regime as sole proprietors: partners are not automatically required to cover themselves, but if performing contracted services for another business they need an ICEC or self-elected coverage to avoid being classified as that business's employee.
LLC members
Same general regime as sole proprietors/partners — not automatically required to self-cover, but an ICEC or self-elected coverage is needed to be treated as an independent contractor rather than employee when performing work for another business.
Corporate officers
Corporate officers and managers of manager-managed LLCs may be exempt if they meet specific elective criteria set by the Department of Labor & Industry (an elective exclusion process exists). The source material located does not state a specific numeric cap on the number of officers who may be excluded. Officers/LLC managers who do NOT satisfy the elective criteria and who receive pay for ordinary duties are automatically covered as employees. (Not independently verified against the administrative rule text for officer-count caps — treat that detail as unconfirmed.)
Construction rules in Montana
Construction is treated more strictly: construction employers must provide Montana workers' comp coverage for ALL employees, resident and nonresident, while they are working in Montana — this requirement is not relaxed the way general exemptions might be. Construction-trade independent contractors are also subject to the ICEC system described above.
How the exemption is filed
This is a genuine state exemption registry, not merely a policy endorsement. Administered by the Employment Standards Division / Independent Contractor Central Unit of the Montana Department of Labor & Industry (DLI). Applicant must show (1) freedom from control/direction over performance of their own services, and (2) engagement in an independently established trade, occupation, profession, or business (evaluated via a documentation/point system). Application is submitted online; no test is required. Fee: $125, non-refundable, per the ICEC program page (erd.dli.mt.gov). Duration: the certificate/renewal is valid for a 2-year period per Mont. Admin. R. 24.35.117 (found via a Cornell LII mirror of the Montana Administrative Rules, not fetched directly from a .mt.gov rules page — treat the exact rule text as medium confidence even though the DLI program page independently corroborates a 2-year cycle). Working without a required ICEC or coverage can draw fines up to $5,000 per violation.
- Statute
- Mont. Code Ann. § 39-71-417 (ICEC/independent contractor status); implementing rules at Mont. Admin. R. 24.35.101 et seq., including 24.35.117 (renewal) and 24.35.121 (application/renewal fee)
- Market
- Competitive — coverage is bought from a private carrier.
Notes and open questions
Montana is the outlier of this group of five: it runs an actual state exemption CERTIFICATE program (ICEC) with a real fee and renewal cycle, distinct from a simple policy-endorsement exclusion. The $125 fee and DLI/Employment Standards Division administration are verified directly from erd.dli.mt.gov. The 2-year renewal period is corroborated by a secondary legal-reference mirror (law.cornell.edu / regulations.justia.com citing Mont. Admin. R. 24.35.117), not a page fetched directly from mt.gov — recommend a final direct check of the admin rule on sos.mt.gov/ARM before publishing if exact renewal wording matters. The precise numeric cap (if any) on how many corporate officers/LLC managers can be excluded from coverage was not found in the pages fetched and should be treated as unverified (null-equivalent) rather than guessed.
Sources
- https://erd.dli.mt.gov/work-comp-regulations/montana-contractor/independent-contractor/
- https://erd.dli.mt.gov/work-comp-regulations/requirements-for-ic
- https://montanastatefund.com/web/home/work-comp/who-is-covered.jsf
- https://www.law.cornell.edu/regulations/montana/Mont-Admin-r-24.35.117
- https://www.law.cornell.edu/regulations/montana/Mont-Admin-r-24.35.121
Source material dated Pages accessed 2026-08-30; ICEC program pages undated on source but reflect current DLI program. Compiled from official Montana sources as a starting point, not legal advice — rules change, and your situation may turn on facts this page cannot see. Confirm with Montana Department of Labor & Industry, Employment Standards Division (Independent Contractor Central Unit) or ask us and we’ll check it for you.
Workers' comp exemption filing in Montana
Tell us about your Montana business and we'll confirm whether you qualify for an exemption.