Independent Contractor Exemption Certificates

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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.

Frequently Asked Questions

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