Independent Contractor Exemption Certificates

Becoming an Independent Contractor

A worker must be:

• Free from control or direction from hiring agent.
• Engaged in their own independently established business, occupation, trade, or profession.
• Covered under a self-elected workers' compensation insurance policy or obtain an Independent Contractor Exemption Certificate (ICEC).

How to obtain an ICEC:

• Read, complete, and submit the entire original and notarized application and waiver form with a non-refundable $125 fee to the Department.
• Submit business documentation with your completed application that demonstrates you have an established business for each occupation listed on you application.

Independent contractors can be fined up to $1,000 per violation for:

• Performing work without an ICEC;
• Performing work with a revoked or suspended ICEC;
• Transferring their ICEC to another person; or
• Misrepresentation of the independent contractor status.

When Hiring an Independent Contractor

Make sure you:

• Do not control the method and means of how they perform their work, i.e., providing equipment and training.
• Have a written contract that states what is to be performed, materials used, start and completion dates, payment based on completed project, and liability for failure to complete the project.
• Obtain references and check them out to ensure they are experts in their field of work.
• Check periodically to confirm that they have a valid ICEC or WC insurance on themselves.
• Ask for proof of their ICEC and verify it is in good standing by searching on our website or calling our office at (406) 444-7734.

Hiring agent can be fined up to $1,000 per violation for:

• Exercising control to create an employee/employer relationship; or
• Requiring an employee to assume an independent contractor status.