A new state licensing requirement for community health workers takes effect under HB850—here's what employers need to know.
Most Montana professional services owners don't realize that a provision buried in HB850 has created a new state licensing requirement that could affect their hiring and contracting decisions immediately.
Here's what happened: Montana passed HB850, a bill primarily focused on establishing licensing and regulation of community health workers. Tucked into Section 4(1) on page 2 is a mandate that any community health worker in Montana must now obtain a state license from the Department of Labor and Industry before practicing.
If your professional services firm employs or contracts with community health workers—whether full-time, part-time, or on a project basis—those workers must now complete a state-approved training program, accumulate supervised experience hours as prescribed by regulation, and pay the required licensing fees. This applies whether the worker is on your payroll or an independent contractor.
Community health workers typically include individuals who provide outreach, education, navigation, or support services in healthcare, social services, or wellness contexts. If this describes anyone in your organization, the licensing requirement applies to them.
The practical impact breaks down into several areas:
Training and Experience Requirements: Workers must complete an approved training program and supervised experience hours before they can legally practice. The specific hours and program standards will be set by the Department of Labor and Industry through administrative rules, but these requirements will take time and money to complete.
Licensing Fees: The law authorizes the department to charge prescribed fees for licensure. These costs will be borne either by your business or your workers, depending on your employment arrangement.
Hiring Timeline: You can no longer hire a community health worker and have them start work immediately. There's now a compliance window between hiring and the worker becoming legally eligible to practice.
Contractor Verification: If you contract with community health workers, you'll need to verify their license status before engaging them.
HB850 took effect upon enactment, with the licensing provision codified in Title 37 of Montana Code Annotated. The Department of Labor and Industry will develop the specific training standards, supervised experience requirements, and fee structure through administrative rulemaking. Those rules will provide the detailed operational requirements for compliance.
Professional services firms should:
• Review whether any current or planned employees or contractors qualify as community health workers under the law's definition
• Monitor Department of Labor and Industry announcements for the final training and licensing requirements
• Budget for licensing costs and extended hiring timelines
• Ensure any existing community health workers understand the new licensing requirement and timeline
The licensing framework isn't yet fully detailed, but the requirement itself is clear and in effect. Businesses should begin assessing their workforce now rather than waiting for the regulatory details to emerge.
For a detailed, business-specific guide to HB850's community health worker licensing provision, contact your industry association or local chamber of commerce for resources tailored to your sector.