Workers' Compensation (Michigan)

By Marc F. Herron Let’s take a look at some information small business owners should familiarize themselves with regarding workers’ compensation coverage in Michigan. Pursuant to Michigan’s Worker’s Disability Compensation Act, MCL 418.101, et seq., all private employers employing three (3) or more workers at the same time must have workers’ compensation insurance. MCL 418.115.

Maybe your small business regularly employs less than three employees. Well, the act addresses your situation, also. If during the preceding fifty-two (52) weeks your business employed at least one (1) employee for thirty-five (35) hours or more per week for thirteen (13) weeks or longer, then your company must have workers’ compensation insurance.

Let’s recap: 1. Private employer with 3 or more employees… coverage required. 2. Private employer with less than 3 employees... prior 52 weeks, 1 regularly employed worker, employed for 35+ hours, for 13+ weeks…coverage required.

Please note: the Act has different requirements for agricultural businesses than those mentioned in this article.