On March 1, 2025, the Montana Legislature introduced Senate Bill 308, a significant piece of legislation aimed at reforming the state's workers' compensation system. The bill seeks to address the complexities surrounding temporary total disability benefits, ensuring that injured workers receive adequate support while balancing the interests of employers and insurers.

Key provisions of Senate Bill 308 include a maximum weekly compensation benefit set at $2,885, which aligns with the state's average weekly wage at the time of injury. The bill stipulates that temporary total disability benefits will be paid for the duration of a worker's temporary disability, but notably, these benefits will not be adjusted for cost of living increases. This aspect has sparked debate among lawmakers, with some arguing that it could leave workers vulnerable to inflation.

Another critical element of the bill is the stipulation that if a treating physician clears a worker to return to work—whether in the same, modified, or alternative position—the worker will no longer be eligible for temporary total disability benefits, even if they have not yet reached maximum healing. This provision has raised concerns among labor advocates, who fear it may pressure workers to return to work prematurely.

The bill also addresses the interaction between workers' compensation benefits and Social Security disability benefits. If a worker qualifies for Social Security benefits due to their injury, the weekly compensation under the bill will be reduced accordingly. Additionally, the bill includes measures to prevent workers from receiving both wages and temporary total disability benefits without the insurer's written consent, classifying unauthorized dual receipt as theft.

The introduction of Senate Bill 308 has prompted discussions about its potential economic and social implications. Proponents argue that the bill will streamline the workers' compensation process and reduce costs for employers, while critics warn that it may undermine the financial security of injured workers. Experts suggest that the bill's passage could lead to increased scrutiny of workers' rights and the adequacy of support systems in place for those unable to work due to injury.

As the legislative session progresses, stakeholders from various sectors are expected to weigh in on the bill, which could significantly reshape the landscape of workers' compensation in Montana. The outcome of this legislation will likely have lasting effects on both workers and employers, making it a focal point of discussion in the coming weeks.