Corp Officer Coverage Requirements
Corporate Officer Coverage Requirements
State of Montana
Department of Labor & Industry
Brian Schweitzer, Governor
Employment Relations Division
WC Regulation Bureau
Effective July 1, 2007
IMPORTANT NOTICE – REQUIREMENTS FOR CORPORATE OFFICERS OF A CORPORATION AND MANAGERS OF A MANAGER-MANAGED LIMITED LIABILITY COMPANY
Effective July 1, 2007 corporate officers and managers of a manager-managed limited liability company may apply for an Independent Contractor Exemption Certificate. Montana Code Annotated 39-71-417(1)(a)(ii) states an officer or manager who is exempt under 39-71-401(2)(r)(iii) or (2)(r)(iv) may apply, but is not required to apply, to the department for an independent contractor exemption certificate.
Montana Code Annotated 39-51-204(2) (b), states “an officer or manager who is exempt under 39-71-401(2)(r)(iii) or (2)(r)(iv) and who obtains an independent contractor exemption pursuant to 39-71-417(1)(a)(ii) is not considered an independent contractor for Unemployment Insurance purposes.”
Montana Code Annotated 39-71-401(2)(r) exempts from workers’ compensation coverage, officers of a corporation and managers of a manager-managed limited liability company who meet specified criteria. To be exempt, one of the following criteria must be met:
(i) the officer or manager is not engaged in the ordinary duties of a worker for the corporation or the limited liability company and does not receive any pay from the corporation or the limited liability company for performance of the duties;
(ii) the officer or manager is engaged primarily in household employment for the corporation or the limited liability company;
(iii) the officer or manager either:
(A) owns 20% or more of the number of shares of stock in the corporation or owns 20% or more of the limited liability company;
(B) owns less than 20% of the number of shares of stock in the corporation or limited liability company if the officer’s or manager’s shares when aggregated with the shares owned by a person or persons listed in subsection (2) (r) (iv) total 20% or more of the number of shares in the corporation or limited liability company; or
(iv) the officer or manager is the spouse, child, adopted child, stepchild, mother, father, son-in-law, daughter-in-law, nephew, niece, brother, or sister of a corporate officer who meets the requirements of subsection (2) (r) (iii) (A) or (2) (r) (iii) (B).
If a corporate officer or a manager does not meet any of the criteria above they are required to be covered under Montana workers’ compensation.
Phone (406) 444-6532
Fax (406) 444-3465
P.O. Box 8011
Helena, MT 59604-8011