Michigan workers comp requirements decide exactly when an employer must carry coverage, who counts toward the threshold, and the penalty for going without. This guide breaks down the Michigan workers comp requirements in plain English. (Injured instead of hiring? See our Michigan settlement and claim guides linked below.) All figures are from Michigan sources, verified as of June 2026.
Michigan at a Glance
| Required at | 3 employee(s) |
| Which workers count | Coverage is required if you regularly employ 3 or more employees at any one time (full-time, part-time, and seasonal all count), OR employ 1 or more employees 35+ hours per week for 13 weeks or longer in the prior 52 weeks. Agricultural employers must cover if they have 3 or more employees working 35+ hours/week for 13 or more consecutive weeks; householders with domestic servants must cover anyone working 35+ hours/week for 13 weeks or longer in the prior 52 weeks. |
| Who is exempt | Sole proprietors are not required to cover themselves (no self-coverage and no exemption form needed). Partners and LLC members who are managers are generally treated as employees and must be covered. Corporate officers are generally included but may elect out under limited conditions. A stock corporation can be exempt only if all its employees are corporate officers who each own at least 10% of the stock. |
| Penalty for going without | An uninsured employer can be fined 1000 dollars and/or imprisoned for 30 days to 6 months, with each day the employer is uninsured treated as a separate offense. The Workers’ Disability Compensation Agency can also petition a court for an order (injunction) prohibiting the company from employing anyone until proper coverage is secured, and the uninsured employer remains directly liable to pay all benefits to an injured worker. |
| Monopolistic state? | No — private carriers |
In This Michigan Guide:
Is Workers’ Comp Required in Michigan?
Yes — workers’ compensation is mandatory for virtually all Michigan private employers, triggered once they regularly employ 1 or more workers 35+ hours per week for 13 weeks or more in the preceding 52 weeks, OR regularly employ 3 or more employees at any one time.
Michigan Workers’ Comp Requirements at a Glance
Here are the exact Michigan workers comp requirements every employer should know:
| Employees that trigger the mandate | 3 |
| Which workers count | Coverage is required if you regularly employ 3 or more employees at any one time (full-time, part-time, and seasonal all count), OR employ 1 or more employees 35+ hours per week for 13 weeks or longer in the prior 52 weeks. Agricultural employers must cover if they have 3 or more employees working 35+ hours/week for 13 or more consecutive weeks; householders with domestic servants must cover anyone working 35+ hours/week for 13 weeks or longer in the prior 52 weeks. |
| Who is exempt | Sole proprietors are not required to cover themselves (no self-coverage and no exemption form needed). Partners and LLC members who are managers are generally treated as employees and must be covered. Corporate officers are generally included but may elect out under limited conditions. A stock corporation can be exempt only if all its employees are corporate officers who each own at least 10% of the stock. |
| Owners & officers | Yes, in limited cases. A corporate officer or LLC member-manager may elect to be excluded only if the corporation has 10 or fewer shareholders and the officer owns at least 10% of the stock; exclusion is made by filing Form WC-338 (Election or Rejection of Coverage) with the state and the insurer. A business that believes it is excluded from the Act’s requirements must file Form WC-337 (Notice of Exclusion) with the Insurance Compliance Division. |
| Penalty for going without | An uninsured employer can be fined 1000 dollars and/or imprisoned for 30 days to 6 months, with each day the employer is uninsured treated as a separate offense. The Workers’ Disability Compensation Agency can also petition a court for an order (injunction) prohibiting the company from employing anyone until proper coverage is secured, and the uninsured employer remains directly liable to pay all benefits to an injured worker. |
| Monopolistic state? | No — buy from private carriers |
| State fund | NONE — Michigan has no state-run workers’ comp fund (the former state Accident Fund was privatized in 1994). High-risk employers unable to find coverage use the assigned-risk market. |
How to Get Workers’ Comp Coverage in Michigan
A Michigan employer obtains coverage by buying a policy from any licensed private insurance carrier, or — if approved — by qualifying as a self-insurer. Employers who cannot obtain coverage in the voluntary market use the state’s assigned-risk pool, the Michigan Workers’ Compensation Placement Facility (administered with the Compensation Advisory Organization of Michigan/NCCI rate framework).
Private market: YES
What Workers’ Comp Covers in Michigan
Workers’ compensation is a no-fault system: an injured employee gets benefits without having to prove the employer did anything wrong, and in exchange gives up the right to sue for most workplace injuries. A typical Michigan policy pays for medical treatment tied to a work injury, part of the wages lost while the worker recovers, longer-term disability benefits if the injury is permanent, and death benefits to a family.
It also includes employers-liability coverage, which protects the business if an injury still leads to a lawsuit.
Employees vs. Independent Contractors in Michigan
The most common way employers get the Michigan workers comp requirements wrong is by assuming a worker is an “independent contractor” who does not count. State agencies look at how the work is actually controlled, not the label on a 1099. If Michigan decides a contractor was really an employee, the business can owe back premiums and penalties as if coverage should have been in place all along.
When you are close to the employee threshold, confirm each worker’s status with your state board before you decide you are exempt.
Other Michigan workers’-comp rules: Michigan’s governing law is the Worker’s Disability Compensation Act of 1969 (Act 317 of 1969, MCL 418.101–418.941).
Notable Michigan-specific points: partners and LLC member-managers are statutorily treated as employees (not automatically exempt as in many states); the officer exclusion is tightly limited to closely held corporations (≤10 shareholders, ≥10% ownership) via Form WC-338; and businesses claiming exemption must affirmatively file Form WC-337 with the Insurance Compliance Division. Always confirm current figures and your specific situation with the WDCA and a licensed Michigan attorney.
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Understanding Michigan Workers Comp Requirements
The Michigan workers comp requirements exist so injured employees get care and lost wages without having to sue. For most employers, the Michigan workers comp requirements come down to one number: the employee count that triggers the mandate, shown in the table above. Once you hit that count, Michigan workers comp requirements apply whether you planned for them or not, and the penalty for going without is real.
If any part of the Michigan workers comp requirements is unclear, your state board can confirm the threshold, the exemptions, and how to get covered.
Need to get covered? If you are an employer in Michigan shopping for a policy, our sister site compares small-business insurance, including workers’ comp. Compare business insurance options →
Frequently Asked Questions
Is workers’ comp required in Michigan?
Yes — workers’ compensation is mandatory for virtually all Michigan private employers, triggered once they regularly employ 1 or more workers 35+ hours per week for 13 weeks or more in the preceding 52 weeks, OR regularly employ 3 or more employees at any one time.
What is the penalty for not having workers’ comp in Michigan?
An uninsured employer can be fined 1000 dollars and/or imprisoned for 30 days to 6 months, with each day the employer is uninsured treated as a separate offense. The Workers’ Disability Compensation Agency can also petition a court for an order (injunction) prohibiting the company from employing anyone until proper coverage is secured, and the uninsured employer remains directly liable to pay all benefits to an injured worker.
Who is exempt from Michigan workers’ comp?
Sole proprietors are not required to cover themselves (no self-coverage and no exemption form needed). Partners and LLC members who are managers are generally treated as employees and must be covered. Corporate officers are generally included but may elect out under limited conditions. A stock corporation can be exempt only if all its employees are corporate officers who each own at least 10% of the stock.
Official Michigan Sources & Resources
- Michigan Workers’ Disability Compensation Agency (WDCA), within the Michigan Department of Labor and Economic Opportunity (LEO): https://www.michigan.gov/leo/bureaus-agencies/wdca
- Michigan Workers’ Comp Statute: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-act-317-of-1969
- U.S. Department of Labor — Workers’ Comp: dol.gov
- Insurance Information Institute: iii.org
These Michigan workers comp requirements were last verified against official sources in June 2026. Rules and penalties change — confirm the current figure with your state workers’-comp board or a licensed agent.
More Michigan Workers’ Comp Guides
- Michigan Workers’ Comp Settlements
- How to File a Michigan Workers’ Comp Claim
- Workers’ Comp Guides for All 50 States
Disclaimer: This guide is informational only and is not legal, medical, or financial advice. Workers Comp Explained is an independent educational resource, not a law firm or insurer. Workers’ comp benefits, settlement values, deadlines, and requirements vary by state and by the specific facts of your injury and change over time, and any settlement figures here are illustrative only.
Confirm your rights and any deadline with your state’s workers’ compensation board and a licensed attorney before you act.