BEFORE THE DEPARTMENT OF LABOR AND INDUSTRY

                                               STATE OF MONTANA

 

In the matter of the amendment and transfer of ARM 24.11.204, 24.11.317, 24.11.335, 24.11.447, 24.11.451, 24.11.457, 24.11.458, 24.11.462, 24.11.463, 24.11.469, 24.11.472, 24.11.475, 24.11.613, 24.11.915, 24.11.2005, 24.11.2007, 24.11.2015, 24.11.2201, 24.11.2204, 24.11.2205, 24.11.2208, 24.11.2221, 24.11.2405, 24.11.2407, 24.11.2504, 24.11.2506, 24.11.2701, 24.11.2704, 24.11.2707, 24.11.2711, and 24.11.2715, the adoption of NEW RULES I through XL, and the repeal of ARM 24.11.101, 24.11.201, 24.11.203, 24.11.206, 24.11.207, 24.11.208, 24.11.210, 24.11.315, 24.11.316, 24.11.318, 24.11.319, 24.11.320, 24.11.325, 24.11.326, 24.11.327, 24.11.328, 24.11.329, 24.11.331, 24.11.336, 24.11.337, 24.11.441, 24.11.442, 24.11.443, 24.11.445, 24.11.450A, 24.11.452A, 24.11.453A, 24.11.454A, 24.11.455, 24.11.456, 24.11.459, 24.11.464, 24.11.465A, 24.11.470, 24.11.471, 24.11.476, 24.11.481, 24.11.485, 24.11.487, 24.11.490, 24.11.491, 24.11.511, 24.11.515, 24.11.516, 24.11.517, 24.11.518, 24.11.521, 24.11.523, 24.11.525, 24.11.531, 24.11.534, 24.11.616, 24.11.617, 24.11.911, 24.11.1205, 24.11.1207, 24.11.1209, 24.11.1213, 24.11.1221, 24.11.1225, 24.11.1228, 24.11.1229, 24.11.2011, 24.11.2225, 24.11.2401, 24.11.2403, 24.11.2411, 24.11.2501, 24.11.2511, 24.11.2515, and 24.11.2801 pertaining to unemployment insurance

) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

NOTICE OF AMENDMENT AND TRANSFER, ADOPTION, AND REPEAL

 

TO: All Concerned Persons

 

            1. On March 22, 2024, the Department of Labor and Industry (agency) published MAR Notice No. 24-40-414 regarding the public hearing on the proposed changes to the above-stated rules, at page 511 of the 2024 Montana Administrative Register, Issue No. 6.

 

            2. On April 11, 2024, a public hearing was held on the proposed changes to the above-stated rules via the videoconference and telephonic platform. Comments were received by the deadline.

 

            3. The agency has thoroughly considered the comments received. A summary of the comments and the agency responses are as follows:

 

COMMENT 1: A commenter suggested that ARM 24.11.2403 not be repealed.  The commenter suggested that the reasoning to repeal ARM 24.11.2403, that the rule was duplicative of statute and ARM 24.11.2407, was incorrect because the rule does not specifically refer to Professional Employer Organizations.  The commenter suggests that ARM 24.11.2403 provides needed clarity to status determinations.

 

RESPONSE 1: The department disagrees.  As written, ARM 24.11.2403(1) says that the law governing professional employer organizations governs professional employer organizations. Section 39-8-207(4)(b) states that the professional employer organization is the employing unit for purposes of unemployment insurance.  It is therefore unnecessary to restate the statute in administrative rule.  ARM 24.11.2403(2) provides that employment status determinations under unemployment insurance should correspond to determinations under the workers' compensation act.  Such is a requirement of 39-71-417, MCA, and related independent contractor statutes as well as the definitions of "employee" under the Unemployment Insurance laws in Title 39, chapter 51, MCA.  It is not necessary to restate statute, laws of general applicability, or policy statements in administrative rule.

 

COMMENT 2: A commenter stated a lack of concern about proposed amendments to ARM 24.11.2005 and 24.11.2204.

 

RESPONSE 2: The department acknowledges the comment.

 

COMMENT 3: A commenter suggested that a mileage based per diem for meals and incidentals should be accepted by the department in NEW RULE IX as an exclusion from wages.  The commenter suggested this change was in line with federal guidance, and that Montana should not be more restrictive than the IRS.

 

RESPONSE 3: The department agrees that Montana should not be more restrictive than IRS guidance.  As previously written, the rule was specifically designed to align with federal guidance.  However, the term "incidentals" was not included.  Based on the received comment, the term is now included.  Further amendment to the rule as specified by the commenter is not necessary.  Because IRS guidance recognizes that a flat rate includes a mileage based per diem model, the rule as proposed encompasses the change.

 

            4. The agency has adopted NEW RULE IX (24.40.411) with the following amendments, new matter underlined, deleted matter interlined:

 

            NEW RULE IX (24.40.411) PAYMENTS THAT ARE NOT WAGES – EMPLOYEE EXPENSES, JUROR FEES, DIRECTOR'S FEES, AND MILITARY DIFFERENTIAL PAY (1) remains as proposed.

            (2) Employer reimbursement of employee expenses must be based on:

            (a) remains as proposed.

            (b) a flat rate for meals and incidentals not exceeding the per diem allowed by the Internal Revenue Service for the year, unless the employer has a documented higher rate of reimbursement; or

            (c) through (5) remain as proposed.

 

AUTH: 39-51-301, 39-51-302, MCA

IMP:     39-51-201, 39-51-1103, MCA

 

            5. The agency has amended and transferred ARM 24.11.204 (24.40.101), 24.11.317 (24.40.207), 24.11.335 (24.40.211), 24.11.447 (24.40.821), 24.11.451 (24.40.601), 24.11.457 (24.40.615), 24.11.458 (24.40.909), 24.11.462 (24.40.619), 24.11.463 (24.40.911), 24.11.469 (24.40.919), 24.11.472 (24.40.921), 24.11.475 (24.40.903), 24.11.613 (24.40.1501), 24.11.915 (24.40.103), 24.11.2005 (24.40.1401), 24.11.2007 (24.40.1403), 24.11.2015 (24.40.1405), 24.11.2201 (24.40.1503), 24.11.2204 (24.40.1509), 24.11.2205 (24.40.1511), 24.11.2208 (24.40.1513), 24.11.2221 (24.40.1517), 24.11.2405 (24.40.503), 24.11.2407 (24.40.501), 24.11.2504 (24.40.409), 24.11.2506 (24.40.405), 24.11.2701 (24.40.1601), 24.11.2704 (24.40.1603), 24.11.2707 (24.40.1605), 24.11.2711 (24.40.1609), and 24.11.2715 (24.40.1611) as proposed.

 

            6. The agency has adopted NEW RULES I (24.40.105), II (24.40.109), III (24.40.111), IV (24.40.201), V (24.40.203), VI (24.40.209), VII (24.40.401), VIII (24.40.403), X (24.40.603), XI (24.40.605), XII (24.40.609), XIII (24.40.611), XIV (24.40.617), XV (24.40.623), XVI (24.40.801), XVII (24.40.803), XVIII (24.40.805), XIX (24.40.809), XX (24.40.811), XXI (24.40.813), XXII (24.40.823), XXIII (24.40.831), XXIV (24.40.833), XXV (24.40.835), XXVI (24.40.841), XXVII (24.40.901), XXVIII (24.40.907), XXIX (24.40.915), XXX (24.40.917) ,XXXI (24.40.925) ,XXXII (24.40.927) ,XXXIII (24.40.1101),XXXIV (24.40.1103), XXXV (24.40.1107), XXXVI (24.40.1109), XXXVII (24.40.1111), XXXVIII (24.40.1201), XXXIX (24.40.1203), and XL (24.40.1505) as proposed.

 

            7. The agency has repealed ARM 24.11.101, 24.11.201, 24.11.203, 24.11.206, 24.11.207, 24.11.208, 24.11.210, 24.11.315, 24.11.316, 24.11.318, 24.11.319, 24.11.320, 24.11.325, 24.11.326, 24.11.327, 24.11.328, 24.11.329, 24.11.331, 24.11.336, 24.11.337, 24.11.441, 24.11.442, 24.11.443, 24.11.445, 24.11.450A, 24.11.452A, 24.11.453A, 24.11.454A, 24.11.455, 24.11.456, 24.11.459, 24.11.464, 24.11.465A, 24.11.470, 24.11.471, 24.11.476, 24.11.481, 24.11.485, 24.11.487, 24.11.490, 24.11.491, 24.11.511, 24.11.515, 24.11.516, 24.11.517, 24.11.518, 24.11.521, 24.11.523, 24.11.525, 24.11.531, 24.11.534, 24.11.616, 24.11.617, 24.11.911, 24.11.1205, 24.11.1207, 24.11.1209, 24.11.1213, 24.11.1221, 24.11.1225, 24.11.1228, 24.11.1229, 24.11.2011, 24.11.2225, 24.11.2401, 24.11.2403, 24.11.2411, 24.11.2501, 24.11.2511, 24.11.2515, and 24.11.2801 as proposed.

 

            8.  All amendments, transfers, repeals, and adoptions are effective July 1, 2024.

/s/ QUINLAN L. O'CONNOR Quinlan L. O'Connor Rule Reviewer	/s/ SARAH SWANSON Sarah Swanson, Commissioner DEPARTMENT OF LABOR AND INDUSTRY

 

 

            Certified to the Secretary of State June 11, 2024.