Michigan's Workers' Compensation Insurance Law
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Workers' Compensation Laws in Michigan

If a private employer in Michigan has three or more employees at any one time, or employs one or more workers for 35 or more hours per week for 13 or more weeks, the employer must carry workers' compensation coverage. Independent contractors are not considered employees and do not have to be covered when hired by another company to perform work services.

MI Workers' Comp: Key Details

  • Sole proprietors in MI are excluded from workers' comp coverage. Partners, LLC members, and corporate officers are included in coverage, but may elect not to be covered.
  • There are a few classes of workers who are covered by federal laws and are not covered by the Workers' Disability Compensation Act of Michigan, including…
    • Employees of the federal government (such as postal workers, employees at a Veterans Administration hospital, or members of the armed forces).
    • Interstate railroad workers (covered by the Federal Employers Liability Act).
    • Seamen on navigable waters (covered by the Merchant Marine Act of 1920), and people loading and unloading vessels (covered by the Longshoremen's and Harbor Workers' Compensation Act).
    • Agricultural employees (exempt under certain special circumstances).
    • Certain family members of an employer.
  • Uninsured employers in Michigan may be subject to:
    • A fine of $1,000 for each day they are uninsured OR
    • Imprisonment for no less than 30 days and no more than six months. Each day the employer is uninsured is considered a separate offense.
  • There is a competitive state fund in Michigan, but you may also purchase insurance coverage from a private insurer. Self-insurance is permitted for qualifying businesses.

Still have questions about workers' compensation in Michigan? Visit the state's Workers' Compensation Agency for details.

Workers' Compensation Insurance: Further Reading

See Workers' Comp Laws Where You Live