Businesses or hiring agents who utilize independent contractors need to be aware of these changes in order to obtain the protections of the law.
New legislation addressing Independent Contractors is effective April 28, 2005, and came about as a result of a study authorized by the 2003 legislative session.
The legislation restores the conclusive presumption of an independent contractor exemption certificate that was previously overturned by a court decision.
The law now requires that independent contractors either have the exemption or purchase workers’ compensation insurance coverage on themselves. Failure to obtain the exemption or workers’ compensation insurance may result in the worker being treated as an employee of the hiring agent. Hiring agents may be responsible for claims for injuries or occupational diseases and for payment of premium on their wages.
To be conclusively presumed to be an independent contractor, the Department of Labor & Industry (DLI) must:
"Person" means a sole proprietor, a working member of a partnership, a working member of a limited liability partnership, or a working member of a member-managed limited liability company.
To be “working under” an Independent Contractor exemption certificate the worker must be performing the type of work listed on the certificate and the hiring agent and the independent contractor do not have a written or an oral agreement that the independent contractor’s certificate holder's status is that of an employee.
To now obtain an independent contractor exemption certificate from the DLI, an applicant must swear to and acknowledge:
(independent contractors and businesses/hiring agents are encouraged to enter into written agreements expressing the terms of the services. A sample memorandum of understanding is available on the DLI’s website)
(a point system is being utilized to determine if an applicant meets this requirement)
Phone: (406) 444-6543
Fax: (406) 444-4140
P.O. Box 8011
Helena, MT 59604
301 South Park Avenue
Floors 4 and 5
Helena, MT 59601