Michigan

Any employer with more than three employees at any one time, or any employer with one or more workers, who works for 35 or greater hours weekly for at least 13 weeks, must carry Michigan workers compensation insurance.

Workers covered by federal laws such as postal workers, veterans’ administration hospital staff, interstate railroad workers and individuals in the armed forces are considered exempt. Seamen and those loading/unloading sea vessels are considered exempt and fall under federal coverage.

Agricultural workers are also exempt under certain special circumstances. An agricultural employer, however, may voluntarily cover its workers.

A subcontractor/contractor may elect to carry their own workers compensation policy. Sole Proprietors are required to provide workers compensation if they employee either one full-time or three part-time employees.

If the independent contractor does not maintain a separate business, does not provide service to the public and does not employ others, than they will in fact be considered an employee and require coverage.

Failing to provide sufficient coverage is considered a serious offense. If any employee is injured without proper coverage, they maintain the right to sue for civil damages. Also, the Commission may place an order that will prohibit the company from employing any others persons until proper coverage is obtained. The business may be subject to a fine of $1,000 and/or imprisonment for 30 days for the responsible party.