Short answer: Michigan uses two tests. A private employer needs workers' compensation if it regularly employs three or more people at one time, part-time included, or if even one employee has worked 35 or more hours a week for 13 weeks or longer in the past 52 weeks. Farms and households have their own thresholds, according to the state's Workers' Disability Compensation Agency.
Two ways to be covered
MCL 418.115 and the Workers' Disability Compensation Agency's employer FAQ say the Act applies to:
- Private employers that regularly employ three or more employees at one time, including part-time employees
- Private employers with fewer than three employees if at least one has worked 35 or more hours a week for 13 weeks or longer during the preceding 52 weeks
- All public employers, regardless of size
So a business with one full-time employee becomes covered after about three months, even though it never reaches three people.
Farms
An agricultural employer is covered once it has three or more regular employees paid hourly or salary (not piecework) who work 35 or more hours a week for 13 or more consecutive weeks. Separately, a farm with even one employee working 35+ hours a week for five or more consecutive weeks must provide medical and hospital coverage for work injuries.
Households
Householders who employ a domestic worker 35 or more hours a week for 13 weeks or longer in the past 52 weeks are covered as well.
Who isn't covered by Michigan's Act
The agency's annual report notes that independent contractors are not covered, and certain workers fall under federal systems instead: federal employees, interstate railroad workers, seamen, and longshore and harbor workers.
Ways to comply
Michigan employers can buy a policy from a licensed insurer, qualify as an individual self-insurer, or join an approved group self-insurance fund. Coverage can be verified through the agency.
Bottom line
Track both headcount and hours. A small business can cross the 35-hour, 13-week line without noticing. See our workers' compensation insurance overview.
Questions? Contact Alishahi Insurance or call (877) 711-4545. See insurance in Michigan.
Frequently asked questions
How many employees before workers' comp is required in Michigan?
Three or more at one time, or fewer if one has worked 35+ hours a week for 13+ weeks in the past 52 weeks.
Do part-time employees count in Michigan?
Yes. Part-time employees count toward the three-employee test.
When must Michigan farms carry workers' comp?
With three or more regular hourly or salaried employees working 35+ hours a week for 13+ consecutive weeks.
Are Michigan household employers covered?
Yes, if a domestic worker is employed 35+ hours a week for 13+ weeks in the preceding 52 weeks.
Are independent contractors covered in Michigan?
No. Independent contractors are not covered under the Act.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.