Navigating Workers' Compensation for Student Work-Based Learning Experiences
By Brenda Koch, School Risk Manager
As Montana school districts continue to expand Career and Technical Education (CTE) opportunities and work-based learning programs, understanding workers' compensation requirements has become increasingly important. With the passage of HB 283 in 2021, which amended Montana Code Annotated (MCA) 39-71-118(7)(b), districts now have clearer guidelines and options for ensuring proper coverage when students participate in workplace learning experiences.
Understanding the Coverage Options
When students work at local businesses as part of their educational program, there are four distinct scenarios that determine how workers' compensation coverage applies:
Option 1: Paid Student Employment. When an employer pays a student for their work, the relationship is straightforward—the student becomes an employee covered under the business's workers' compensation policy. Students may earn school credit for employment as documented in the work-based learning plan. The employer assumes all responsibility for coverage, claims experience, and receives exclusive remedy protections under workers' compensation law.
Option 2: Unpaid Internship with Business Coverage. For unpaid positions where the student doesn't earn school credit as part of a work-based learning plan (though the student may be assigned credit as part of another course), the business can elect to provide coverage by adding a volunteer endorsement to their workers' compensation policy. The business pays the premium and assumes responsibility for any claims.
Option 3: Unpaid Internship with School District Coverage. When students participate in unpaid work experiences that earn school credit, the district must provide coverage by adding a school-to-work endorsement to the district's workers' compensation policy. The District pays the premium (a very low-cost addition to your policy with the MSGIA) and assumes responsibility for any claims on the worksite.
Option 4: District-Led Off-Campus Learning. For work-based learning opportunities led by district teachers off school grounds during school hours that award school credit hours toward graduation requirements, no workers' compensation coverage is typically provided. Instead, the district relies on general liability coverage, and parent liability risk forms become essential.
Key Requirements
Written Agreements Are Essential. HB 283 requires written agreements between the school district and business that clearly specify which entity will provide workers' compensation coverage. These agreements must be renewed annually with each business partner.
Verification and Documentation. When businesses elect to provide coverage, districts should verify that the workers' compensation policy actually includes the necessary endorsements. Require current policy documentation showing volunteer endorsements or employee coverage as appropriate. Districts must keep all the documentation on file with the district. They are not required to send anything to the workers' compensation carrier.
Safety First. Regardless of the coverage arrangement, both the district and employer must ensure compliance with child labor laws, provide adequate safety training and equipment, and maintain safe working environments for student interns.
Parent Communication. Parent liability risk forms should be signed in advance for unpaid positions, clearly stating that students have personal medical insurance coverage and acknowledging the inherent risks of workplace learning.
Making the Right Choice
It is critical that all districts with any type of work-place experiences and/or student internships, now have workers' compensation coverage in place for students. Whether it be with the community business or the school district; this is no longer an optional coverage. The MSGIA provides a low-cost policy addition; however, it must be added prior to the experience starting and during the late summer/'school starting' window, or the first part of January (prior to second semester starting).
Moving Forward
Districts managing CTE and internship programs should review their current agreements and ensure compliance with HB 283 requirements. The MSGIA has developed template agreements and model policy language available at www.msgia.org to help districts establish proper documentation and coverage arrangements.
Remember, proper workers' compensation coverage isn't just about compliance—it's about protecting students, districts, and business partners while ensuring these valuable learning opportunities can continue to thrive. When in doubt, reach out to MSGIA staff for guidance on coverage questions related to student work experiences.
For questions about workers' compensation coverage for your district's student internship programs, contact the MSGIA team—we are here to help ensure your students can learn safely while gaining valuable real-world experience.
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