In Montana, gig workers are typically classified as independent contractors rather than employees, exempting them from state protections like minimum wage, overtime, and leave requirements. Classification hinges on factors such as the degree of control the hiring entity exerts over work, the worker’s opportunity for profit or loss, and whether the work is integral to the business, following common law tests aligned with federal IRS guidelines. No specific 2025 gig economy laws in Montana reclassify these workers as employees, maintaining the status quo.​
Classification Factors
Montana uses a multi-factor test similar to the federal common law standard to distinguish employees from contractors:
- Behavioral control: Instructions on how, when, or where to work.
- Financial control: Unreimbursed expenses, investment in tools, or payment by time versus job.
- Relationship type: Written contracts, benefits provided, or permanency of the role.​
Recent Legal Developments
The LEGAL Act, effective July 1, 2025, focuses on verifying lawful work authorization for all hires using Form I-9 or E-Verify but does not address gig worker classification. It introduces audits, fines for violators, and protections for compliant employers without altering employee-contractor distinctions.​
Implications for Gig Workers
Independent contractors in Montana’s gig economy must handle their own taxes (receiving 1099-NEC forms for earnings over $600 annually) and lack employer-provided benefits or labor safeguards. Misclassification risks penalties for businesses, including fines or license issues, prompting careful contract reviews.
SOURCE
[1](https://news.dli.mt.gov/News/2025/07/legal-act)
[2](https://news.dli.mt.gov/news/2025/07/legal-act)
[3](https://www.rippling.com/blog/employment-labor-law-in-montana)
[4](https://www.postercompliance.com/blog/labor-law-compliance-for-gig-workers-what-employers-need-to-know/)
[5](https://www.congress.gov/bill/119th-congress/house-bill/100/all-info)
