Skip to content
Oakclause

Independent Contractor Test in Montana

Montana treats work for wages as employment for unemployment insurance until the department finds the worker is an independent contractor, and its contractor exemption certificate requires freedom from control and an independently established business.

Last checked . General information, not legal advice.

Montana at a glance

Test for unemployment insurance
Two part test: control and independent business
Employment is presumed; independent contractor status rests on an exemption certificate requiring freedom from control and an independently established business.
ABC test for unemployment
No
There is no usual course of business prong.

Sources

Last checked

The rules in Montana

Which test does Montana use to classify independent contractors for unemployment insurance?

Test for unemployment insurance in Montana: Two part test: control and independent business. Employment is presumed; independent contractor status rests on an exemption certificate requiring freedom from control and an independently established business.

Does Montana apply the ABC test for unemployment insurance?

No. ABC test for unemployment in Montana: no. There is no usual course of business prong.

Where do the Montana independent contractor tests come from?

The rules above come from Mont. Code Ann. 39-51-203(4), Mont. Code Ann. 39-51-201(15) and Mont. Code Ann. 39-71-417. Each source is linked on this page. We last checked them in October 2026.

Good to know

Lacking a certificate does not by itself make a worker an employee for unemployment insurance.

What this means in practice

Write down how the working relationship actually operates: who sets the hours, who supplies tools, whether the worker serves other clients and whether the work is part of the business's usual line of work. These facts drive every classification test, and a written independent contractor agreement helps only if it matches them.

Check each law separately. A worker can be a contractor under one statute and an employee under another, because wage laws, unemployment insurance, workers' compensation and tax rules may each use their own test. Federal law also applies its own tests alongside the state rules.

Misclassification can lead to back wages, unpaid unemployment contributions, interest and penalties. If a role is close to the line, read the statute and agency guidance for the state where the work is performed, or ask the state labor or unemployment agency how it applies its test.

General information, not legal advice. Laws change, and cities can add their own rules, so check the current statute before you rely on it.