Senate approves higher workers’‑compensation cap after contentious floor debate

Montana senators narrowly approved a bill to raise the statutory ceiling used to compute workers’‑compensation benefits, a measure sponsors described as restoring fairness for injured workers and opponents warned could raise employer premiums.

Senate Bill 308, carried by Senator Harvey, would limit workers’‑compensation weekly benefits to no more than $2,885 — a ceiling that equates to roughly a $150,000 annual salary when the 66% replacement rate is applied. Harvey said committee work produced a compromise to cap benefits at a $150,000 salary level rather than removing the cap entirely.

Supporters, including Senator Novak, said the bill helps workers who face medical bills and lost income, noting that comp benefits are two‑thirds of wages and tax‑free. Opponents such as Senator Emmerich and others argued the measure could increase employer insurance costs and hurt businesses; testimony in committee cited carrier estimates that roughly 15% of claimants would be affected.

The bill passed second reading on a 25–24 tally that the clerk later adjusted following a technical malfunction. Majority Leader McGillivray reported that a remote‑voting malfunction prevented one senator from recording a vote; after a revote the final count was 26–24 in favor and the bill moved forward. Earlier committee discussion referenced the need for an updated fiscal note; sponsors said a revised fiscal note was pending.

Senator Harvey said the bill was intended to support Montana workers and to approximate post‑tax income replacement at a level that promotes return to work. Opponents cautioned that insurers’ premium increases — which some analyses estimated at 6–7% under earlier fiscal estimates — could compound business costs amid inflation, potentially straining employers.

The committee record shows amendments to set the $150,000 ceiling and ongoing work to finalize a fiscal estimate. The bill proceeds to the next stage of legislative review.