Michigan Workers’ Compensation Requirements

Is workers’ comp insurance required in Michigan?

Yes, workers’ compensation insurance is required for any business with one or more employees. It’s also important to realize that Michigan workers’ compensation requirements mandate any employer be able to prove they can pay benefits if an employee is injured on the job or suffers from a work-related disease. 

Workers’ compensation insurance is required in Michigan in very specific situations. For instance, businesses that employ one or more people for 35 hours or more per week for 13 weeks or longer during the year are required to carry workers’ comp insurance.

The same is true for private employers that “regularly” employ three or more people at one time, agriculture employers that employ three or more people for 35 hours or more per week for at least 13 weeks in a year, and households that employ domestic employees for 35 hours or more week/13+ weeks within a year. 

Public employers of all types are required to carry workers’ compensation insurance.

Are self-employed professionals required to carry workers’ compensation in Michigan?

According to Michigan workers’ compensation requirements, self-employed professionals are not required to carry workers’ comp insurance. The same is true for sole proprietors, as well as for 1099 workers.

Who is exempt from Michigan workers’ compensation requirements?

While most workers must be protected by workers’ compensation insurance, you will find some other exemptions, these include the following: Domestic workers who do not meet the hours/weeks worked requirement, Business partners, Corporation officers and family members working for relatives.