Workers' Compensation Law Summaries
Montana, Workers' Compensation Law Summaries
Montana's workers' compensation law is located in the Montana Code Annotated at Title 39, Chapter 71.
COVERAGE
Workers' compensation coverage is compulsory as to all employment in Montana (Secs. 39-71-117 and 39-71-118).
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 who represents to the public that the person is an independent contractor shall elect to be bound personally and individually by the provisions of compensation plan No. 1, 2, or 3 (see WHAT THE EMPLOYER MUST DO, below), but may apply for an exemption from the workers' compensation law. The exemption, if approved, remains in effect for three years following the date of approval. To maintain the independent contractor status, an independent contractor shall submit a renewal application every two years (Sec. 39-71-417).
Coverage is also compulsory for all public employments, including public contractors and volunteer rescue workers (Secs. 39-71-117 and 39-71-118).
A student who is enrolled in an elementary, secondary or postsecondary educational institution and who is participating in work-based learning activities and paid wages by the educational institution or business partner is the employee of the entity that pays the student's wages. A student who is not paid wages is a volunteer (Sec. 39-71-118).
EXCEPTIONS
Statutory coverage is not provided for domestic and casual employment; employers covered by federal law; persons performing services for aid and sustenance only, officials at amateur athletic events; real estate brokers and salespersons; direct sellers of consumer goods; dependent members of an employer's family for whom the employer may claim an exemption under the federal tax code; newspaper carriers or free-lance correspondents.
Railroad employment (railroad construction work is covered); employees of tribal members; licensed jockeys when racing and trainers and exercise persons at a race meet; spouses; petroleum land professionals; certain officers and managers of quasi-public, private and limited liability companies; ditch company officers or managers; and ministers' services and providers of companionship services are excepted as well. Specific rules apply to certain individuals (and their employees) who hold themselves out to be independent contractors.
Cosmetologists and barbers who qualify as independent contractors may exempt themselves (Sec. 39-71-401).
The employment of a person performing the services of an interstate or intrastate common or contract carrier hired by an individual or broker or freight forwarder is exempt (Sec. 39-71-401, as amended by H. 378, L. 2009, effective April 16, 2009).
Athletes engaged in contact sports such as, but not limited to, football, hockey, roller derby, rugby, lacrosse, wrestling and boxing are exempt (Sec. 39-71-401, as amended by H. 785, L. 2007).
While coverage is mandatory for a partner or sole proprietor who is an independent contractor (except in the cases of real estate and farm services), the partner or sole proprietor may apply for a personal exemption. Coverage is voluntary as to exempt employments (Sec. 39-71-118).
Unless an employer elects coverage and the insurer allows the election, the workers' compensation law does not apply to service performed to provide companionship services or respite care for individuals who, because of age or infirmity, are unable to care for themselves when the person providing the service is employed directly by a family member or an individual who is a legal guardian (Sec. 39-71-401(2)(u)).
See also COVERAGE above.
WHAT THE EMPLOYER MUST DO
Insurance choices.- Employers may self-insure (Compensation Plan No. 1, Sec. 39-71-2101), may purchase insurance from a private insurance carrier (Compensation Plan No. 2, Sec. 39-71-2201) or may insure with the state mutual insurance fund (Sec. 39-71-2311).
Waiting period.- No compensation may be paid for the first 32 hours or four days' loss of wages, whichever is less, that the claimant is totally disabled and unable to work due to an injury. The claimant is entitled to compensation starting with the fifth day.
Choice of physician.- Subject to special provisions for managed care plans, a worker may choose the initial treating physician within the state (Sec. 39-71-1101).
Reports and records.- Every employer insured by a plan No. 2 or plan No. 3 insurer must file a report of every incident, injury or occupational disease with the Department of Labor and Industry (Sec. 39-71-307).
Employers must keep books, records and payrolls open to inspection by the Department of Labor and Industry (Sec. 39-71-304).
Premium discounts.- An insurer may provide a premium discount to an employer which implements a formal safety program (Sec. 39-71-421).
Offset provisions.- If periodic disability benefits are payable to a worker under the federal OASDI, weekly temporary total and permanent total disability benefits resulting from both injury and occupational disease are reduced by an amount approximating one-half (but not below zero) of the federal benefit for the week (calculated from the date of the Social Security disability entitlement).
Drug and alcohol use.- An employee is not eligible for workers' compensation benefits if the employee's use of alcohol or nonprescribed drugs is the sole and exclusive cause of a work-related injury or death. If the employer knew the employee was under the influence of alcohol or drugs on the job and did not attempt to stop the problem, this rule does not apply (Sec. 39-71-407).
NOTICE
Injuries not resulting in death must be reported to the employer within 30 days unless the employer has actual knowledge of the injury. This notice provision does not apply to occupational diseases (Sec. 39-71-603).
POSTING
Each employer must post a sign in the workplace at a location where notices to employees are normally posted, informing the employee about the employer's current method of providing workers' compensation insurance (Sec. 39-71-401(6)).
PENALTIES
If an employer misrepresents an employee's status as an exempt independent contractor, it may face a civil penalty of $1,000 in addition to any other penalties provided by law (Sec. 39-71-401(3)).
The penalty for failing to file the report necessary for proper claim filing may be assessed as a fine of $200 to $500 per offense (Sec. 39-71-307).
Failure to post a notice carries a $50 fine (Sec. 39-71-401).
A medical care provider can be fined from $200 to $500 for referring a worker to a facility owned wholly or partially by the provider unless the provider discloses the ownership and provides information on alternative facilities. Managed care organizations certified by the Department of Labor and Industry are excluded (Sec. 39-71-315).
A person who obtains benefits through deception or fraudulent means can be required to pay ten times the amount involved, subject to a $50,000 maximum (Sec. 39-71-316).
One who violated the provisions regarding independent contractor certification can be fined up to $1,000 (Sec. 39-71-419).
An employee's right to compensation is suspended if the employee refuses to submit to a medical examination (Sec. 39-71-605). Except for a medical benefit and impairment award, benefits, including rehabilitation, can be terminated for noncooperation (Sec. 39-71-1032). Upon 14 days' notice, an insurer may terminate compensation benefits for an employee's noncompliance (Sec. 39-71-1106).
WHO TO CONTACT
Department of Labor and Industry, Workers Compensation Court, 1625 11th Ave. P.O. Box. 537, Helena, MT, 59624-0537 (406) 444-7794.
<p>Department of Labor and Industry, Workers Compensation Court, 1625 11th Ave. P.O. Box. 537, Helena, MT, 59624-0537 (406) 444-7794.</p>