Department of Labor and Industry

Montana Contractor

Montana Construction Contractor

Welcome to the Montana Department of Labor and Industry. The following links will take you either to the Independent Contractor Central Unit (ICCU) or to the Construction Contractor Registration Unit (CR).

Independent Contractor Central Unit (ICCU)

IC application (non refundable fee) form is available online. The ICCU has two primary functions. The first is to issue Independent Contractor Exemption Certificates and the second is the determination of worker status (independent contractor or employee) at the request of participating programs. On the ICCU site you will find landmark court cases, independent contractor definitions, ICCU news, and brochures online. You will also find contact information for ICCU, as well as forms and applications to print. 

Construction Contractor Registration Unit (CR)

CR application form is available online. The CR registers construction contractors that have employees, corporations and manager-managed limited liability companies. This law was mandated by the 1995 Legislature to ensure that all construction contractors with employees are paying Montana rates for workers' compensation insurance. In this site you will be able to search for registered construction contractors or register as a construction contractor.

Disclaimer

• Just because an independent contractor or construction contractor is registered with our Department does not mean that they are licensed, bonded, or tested.
• Registrations only ensure applicants are in compliance with Montana's workers' compensation laws and do not imply quality assurance.

Additional Information

• We participate in several home shows around the state. If you would like us to come to your area please contact us.
• We are also available for meetings and educational presentations.
• Your organization may request up to a quantity of 50 brochures to be mailed or picked up.
• If you have any suggestions to help us improve what we do, please let us know.

Contact Information

• Independent Contractor Central Unit - (406) 444-9029
• Construction Contractor Registration Unit - (406) 444-0563
• Supervisor/ Program Manager - Dallas Cox - (406) 444-9586

If you are not in the Helena area and need to speak to someone in person for assistance, please visit your local Job Service Workforce Center.

Mailing Address:
Construction Contractor Registration Unit and/or
Independent Contractor Central Unit
PO Box 8011
Helena, MT  59604-8011

Physical Location (in Helena for overnight mailing and same day processing for walk-in customers):
1805 Prospect Ave
Helena, MT  59601

Applications and Forms

Independent Contractor Forms and Applications

Independent Contractor Exemption Certificate Application for Sole Proprietor, Partnership or LLP, Member-Managed LLC's and Construction Industry Manager-Managed LLC's (pdf)

Independent Contractor Exemption Certificate Application for Corporate Officers and Non-Construction Industry Manager-Managed LLC's (pdf)

15-Point Criteria (pdf)

Sample Memo of Understanding (pdf)

Corporate Officer Exemption Notice (Non-Construction Industry) (pdf)

Visit the ICCU home page for more information.

Construction Contractor Forms and Applications

Construction Contractor's Registration Application

Corporate Officer Exemption Notice (Construction Industry)

Visit the CR home page for more information.

Independent Contractor Central Unit

 

ic_sized

Welcome to the Independent Contractors Central Unit

You will find information, bulletins, forms and applications, court decisions and contacts to help you.

The INDEPENDENT CONTRACTOR CENTRAL UNIT (ICCU) has two primary functions:

  • Issuance of the Independent Contractor Exemption Certificate (ICEC) and
  • writing of IC decisions on whether a worker is an employee or independent contractor.

Several agencies rely on the decisions of the ICCU. They are Unemployment Insurance, Workers' Compensation, Wage and Hour, Human Rights, and Department of Revenue.

These programs have chosen to utilize the expertise of the ICCU. The ICCU will treat both employers and employees objectively, equitably, and quickly.
In the past, employers and employees had to work separately with each agency. Now, the decision of the ICCU is accepted by the agencies involved.

Frequently Asked Questions

What is an Independent Contractor exemption?

How can I get IC application forms?

What are application mistakes to avoid?

How can I get printed materials or schedule an IC presentation?

Independent Contractor Administrative Rules of Montana

ARM 24.35.101-24.35.303

Montana Code Annotated

IC Statutes 39.71.401-441

Senate Bill

Senate Bill 108

Contact Information

• Independent Contractor Central Unit - (406) 444-9029
• Supervisor/ Program Manager - Dallas Cox - (406) 444-9586

Mailing Address:
Independent Contractor Central Unit
PO Box 8011
Helena, MT  59604-8011

Physical Location (in Helena for overnight mailing and same day processing for walk-in customers):
1805 Prospect Ave
Helena, MT  59601

History of the ICEC program

Landmark Decisions

IC Laws Explained

The Montana State Supreme Court, in its 2003 decision Kelly Wild vs. Fregein Construction, significantly changed the status of independent contractor exemption certificates (ICEC) that have been issued by the Montana Department of Labor since 1984. Until 2003, ICECs were considered to be conclusive, that is to say, legally determining, in cases of injury and other liability issues. Put another way, if you as an IC had an ICEC, you were personally liable for any accidents you were involved in, and in contrast those who employed you were free of liability. With the Supreme Court decision in 2003, however, suddenly IC liability became a much broader and more complex legal issue, so the 2003 Montana Legislature established a study committee through Senate Bill 270 to recommend ways to clarify IC relationships and thereby minimize litigation. By creating a strengthened set of new IC laws, the 2005 Montana Legislature re-established the conclusive status of the ICEC.

2005 Legislative Changes to IC Law

Based on over a year of research, discussions and committee recommendations on how to deal with the impact of the Supreme Court's Wild vs. Fregein decision, the 2005 Montana Legislature strengthened our state's independent contractor (IC) statutes. Senate Bill 108 became effective on April 28, 2005, and its associated statutes clarify who is actually operating as an IC.

Research findings used to write these new IC statutes identified Montana as having the highest percentage (eight percent) of independent contractors as a portion of the state workforce of any state that registers independent contractors.

During the public hearings on IC rules, several business owners talked about the problems created by a process that was too relaxed in the way it issued IC exemption certificates, pitting the contract bids of employers who were properly covered with workers' compensation insurance against the contract bids of others not properly covered but who thereby had an unfair competitive advantage. These kinds of issues should be resolved by the Legislature's new IC law.

Important Elements of the IC Law

The law requires independent contractors to either have an ICEC or purchase workers' compensation insurance coverage on themselves. Failure to obtain an ICEC or workers' compensation insurance will result in the state treating the worker as an employee of the hiring agent. Hiring agents will be responsible for claims for injuries or occupational diseases and for payment of premium on the wages of those considered their employees.

To be conclusively presumed to be an independent contractor, the Department of Labor & Industry (DLI) must approve an application for an ICEC based upon a submission of a complete application, and the person must be working under the ICEC.  To be “working under” an ICEC, the worker must be performing the occupation listed on the certificate and the hiring agent and the independent contractor must not have a written or an oral agreement that the independent contractor's certificate holder's status is that of an employee.

The Department has the authority to investigate the working relationship between an independent contractor and his/her hiring agent. The Department may suspend or revoke an independent contractor exemption certificate. Fines may be assessed against the hiring agent if control is exerted to the extent it creates an employer/employee relationship.

The AB Test

How can you tell if an individual is an independent contractor (IC) or an employee? An IC is a worker who has an ICEC and meets the following conditions when he or she renders service in the course of an occupation: he or she (A) has been and will continue to be free from control or direction over the performance of the services, both under contract and in fact; and (B) is engaged in an independently established trade, occupation, profession or business, and further acknowledges no coverage under the Workers' Compensation and Occupational Disease Act.

To obtain an ICEC, each applicant needs to supply sufficient business documentation to the Department that B requirements are satisfied. Through monitoring and auditing, the Department determines that A requirements are satisfied. This two-pronged determination of IC status is commonly referred to as the AB test.

The 2005 Legislature strengthened and clarified the process for determining how individuals are measured by the AB test, including putting in place an objective point system to rank the individual business components of IC applicants. The AB test is more objective, specific and documented, and the new IC law also specifically re-establishes the conclusive status of the IC exemption certificate.

Montana Construction Contractor Registration

 

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Welcome to the Montana Construction Contractor Registration Unit

 39-9-101 et. seq. MCA

The purpose of Construction Contractor Registration is to assure that all construction contractors are competing fairly and are in compliance with the workers' compensation laws. The law also provides for protection from upward migration of workers' compensation liability. If the construction contractor is registered and in good standing on the date the contract begins, the liability for workers' compensation accidents will not be the responsibility of the general contractor or the homeowner. There is also a provision for industry and consumer education. 

All incorporated construction contractors and construction contractors with employees must register.  Construction contractors without employees, plumbers and electricians may register but registration is not required. The registration cost is $53 for a two-year registration. The department provides a list of all registered construction contractors. This list is available on the Internet. If a construction contractor does not register, there is a provision for a penalty of up to $500. 

If a construction contractor falsifies a registration or uses a falsified registration, there is a penalty of not more than $5,000.

News and Information

The program is creating ID cards for registered contractors. This is more convenient for contractors that need to show proof of registration if they don't have their certificate with them.

The program participates in several home shows around the state. If you would like us to come to your area please contact us.

We are available for meetings and educational presentations. If you have any suggestions to help us improve what we do, please let us know.

Construction Contractor Administrative Rules of Montana

ARM 24.33.101-24.33.151

Montana Code Annotated

CR Statutes 39.9.101-401

Recent Court Cases

Japeth Edmunds vs. Liberty Northwest Insurance

RAM Montana, Incorp. vs. Independent Contractor Central Unit / Uninsured Employers' Fund (pdf)

Contact Information 

• Construction Contractor Registration Unit - (406) 444-0563
• Supervisor/ Program Manager - Dallas Cox - (406) 444-9586

Mailing Address:
Construction Contractor Registration Unit
PO Box 8011
Helena, MT  59604-8011

Physical Location (in Helena for overnight mailing and same day processing for walk-in customers):
1805 Prospect Ave
Helena, MT  59601