Montana workers comp requirements decide exactly when an employer must carry coverage, who counts toward the threshold, and the penalty for going without. This guide breaks down the Montana workers comp requirements in plain English. (Injured instead of hiring? See our Montana settlement and claim guides linked below.) All figures are from Montana sources, verified as of June 2026.
Montana at a Glance
| Required at | 1 employee(s) |
| Which workers count | Coverage is triggered by the first employee regardless of full-time, part-time, seasonal, or occasional status; there is no employee-count minimum, so even one part-time worker requires coverage. |
| Who is exempt | Sole proprietors, working members of a partnership, working members of a limited liability partnership, and working/member-managed members of an LLC are exempt; also exempt are casual employment, certain household/domestic workers, real estate and insurance salespersons paid solely by commission, direct sellers, ordained/licensed ministers, volunteers, freelance/cosmetologist-barber arrangements under MCA, and workers covered by federal law (per MCA 39-71-401). |
| Penalty for going without | An uninsured employer may be fined up to 1000 plus an additional 100 for each day out of compliance (MCA 39-71-504); the state may also assess a penalty equal to double the premium that should have been paid on the prior three-year payroll, with a minimum penalty of 200, whichever is greater; the employer is also personally liable for 100 percent of the injured worker’s medical and wage-loss benefits, must reimburse the Uninsured Employers’ Fund, and can face misdemeanor/criminal exposure and business closure for willful violations. |
| Monopolistic state? | No — private carriers |
In This Montana Guide:
Is Workers’ Comp Required in Montana?
Yes — Montana requires workers’ compensation coverage as soon as an employer hires its first employee, with only specific statutory exemptions.
Montana Workers’ Comp Requirements at a Glance
Here are the exact Montana workers comp requirements every employer should know:
| Employees that trigger the mandate | 1 |
| Which workers count | Coverage is triggered by the first employee regardless of full-time, part-time, seasonal, or occasional status; there is no employee-count minimum, so even one part-time worker requires coverage. |
| Who is exempt | Sole proprietors, working members of a partnership, working members of a limited liability partnership, and working/member-managed members of an LLC are exempt; also exempt are casual employment, certain household/domestic workers, real estate and insurance salespersons paid solely by commission, direct sellers, ordained/licensed ministers, volunteers, freelance/cosmetologist-barber arrangements under MCA, and workers covered by federal law (per MCA 39-71-401). |
| Owners & officers | Sole proprietors, partners, and LLC/LLP members are not required to cover themselves but may elect to be covered (opt in); corporate officers are generally covered but may elect out of coverage by filing the appropriate election/exemption with their insurer or, for independent contractors, by obtaining an Independent Contractor Exemption Certificate from the Department of Labor and Industry. |
| Penalty for going without | An uninsured employer may be fined up to 1000 plus an additional 100 for each day out of compliance (MCA 39-71-504); the state may also assess a penalty equal to double the premium that should have been paid on the prior three-year payroll, with a minimum penalty of 200, whichever is greater; the employer is also personally liable for 100 percent of the injured worker’s medical and wage-loss benefits, must reimburse the Uninsured Employers’ Fund, and can face misdemeanor/criminal exposure and business closure for willful violations. |
| Monopolistic state? | No — buy from private carriers |
| State fund | Montana State Fund (a competitive, non-monopolistic state fund and the insurer of last resort) |
How to Get Workers’ Comp Coverage in Montana
Montana employers obtain coverage one of three ways — Plan 1: self-insure with state approval; Plan 2: buy from a licensed private insurance carrier; or Plan 3: buy from the Montana State Fund, which must accept any employer requesting coverage as the insurer of last resort.
Private market: YES
What Workers’ Comp Covers in Montana
Workers’ compensation is a no-fault system: an injured employee gets benefits without having to prove the employer did anything wrong, and in exchange gives up the right to sue for most workplace injuries. A typical Montana policy pays for medical treatment tied to a work injury, part of the wages lost while the worker recovers, longer-term disability benefits if the injury is permanent, and death benefits to a family.
It also includes employers-liability coverage, which protects the business if an injury still leads to a lawsuit.
Employees vs. Independent Contractors in Montana
The most common way employers get the Montana workers comp requirements wrong is by assuming a worker is an “independent contractor” who does not count. State agencies look at how the work is actually controlled, not the label on a 1099. If Montana decides a contractor was really an employee, the business can owe back premiums and penalties as if coverage should have been in place all along.
When you are close to the employee threshold, confirm each worker’s status with your state board before you decide you are exempt.
Other Montana workers’-comp rules: Montana operates a three-plan coverage system (Plan 1 self-insured, Plan 2 private carrier, Plan 3 Montana State Fund). Before hiring an independent contractor, the employer must verify the contractor holds a valid Independent Contractor Exemption Certificate (ICEC) issued by the Department of Labor and Industry or carries their own workers’ comp; otherwise the worker is treated as an employee requiring coverage.
The state also maintains an Uninsured Employers’ Fund (UEF) that pays benefits to workers of uninsured employers and then pursues reimbursement plus penalties from the employer.
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Understanding Montana Workers Comp Requirements
The Montana workers comp requirements exist so injured employees get care and lost wages without having to sue. For most employers, the Montana workers comp requirements come down to one number: the employee count that triggers the mandate, shown in the table above. Once you hit that count, Montana workers comp requirements apply whether you planned for them or not, and the penalty for going without is real.
If any part of the Montana workers comp requirements is unclear, your state board can confirm the threshold, the exemptions, and how to get covered.
Need to get covered? If you are an employer in Montana shopping for a policy, our sister site compares small-business insurance, including workers’ comp. Compare business insurance options →
Frequently Asked Questions
Is workers’ comp required in Montana?
Yes — Montana requires workers’ compensation coverage as soon as an employer hires its first employee, with only specific statutory exemptions.
What is the penalty for not having workers’ comp in Montana?
An uninsured employer may be fined up to 1000 plus an additional 100 for each day out of compliance (MCA 39-71-504); the state may also assess a penalty equal to double the premium that should have been paid on the prior three-year payroll, with a minimum penalty of 200, whichever is greater; the employer is also personally liable for 100 percent of the injured worker’s medical and wage-loss benefits,
must reimburse the Uninsured Employers’ Fund, and can face misdemeanor/criminal exposure and business closure for willful violations.
Who is exempt from Montana workers’ comp?
Sole proprietors, working members of a partnership, working members of a limited liability partnership, and working/member-managed members of an LLC are exempt; also exempt are casual employment, certain household/domestic workers, real estate and insurance salespersons paid solely by commission, direct sellers, ordained/licensed ministers, volunteers, freelance/cosmetologist-barber arrangements under MCA, and workers covered by federal law (per MCA 39-71-401).
Official Montana Sources & Resources
- Montana Montana Department of Labor and Industry, Employment Relations Division (Workers’ Compensation Regulations Bureau): https://erd.dli.mt.gov/work-comp-regulations/
- Montana Workers’ Comp Statute: https://mca.legmt.gov/bills/mca/title_0390/chapter_0710/part_0040/section_0010/0390-0710-0040-0010.html
- U.S. Department of Labor — Workers’ Comp: dol.gov
- Insurance Information Institute: iii.org
These Montana workers comp requirements were last verified against official sources in June 2026. Rules and penalties change — confirm the current figure with your state workers’-comp board or a licensed agent.
More Montana Workers’ Comp Guides
- Montana Workers’ Comp Settlements
- How to File a Montana Workers’ Comp Claim
- Workers’ Comp Guides for All 50 States
Disclaimer: This guide is informational only and is not legal, medical, or financial advice. Workers Comp Explained is an independent educational resource, not a law firm or insurer. Workers’ comp benefits, settlement values, deadlines, and requirements vary by state and by the specific facts of your injury and change over time, and any settlement figures here are illustrative only.
Confirm your rights and any deadline with your state’s workers’ compensation board and a licensed attorney before you act.