Workers' compensation in Michigan - Pie Insurance

Michigan workers’ comp 101

Workers’ compensation insurance is an important way to ensure your small business can protect employees in the event of a work-related injury or illness. It also prevents liabilities to your business by providing coverage to your workers.

Michigan workers’ compensation will pay for any reasonable and necessary medical care if an employee has experienced a work-related injury or illness.

Read on to learn what Michigan workers’ compensation is, the benefits employees get from coverage, and how it can protect you and your small business in the event of a work-related accident.

What do Michigan small business owners need to know about workers’ compensation?

• First, it’s important to know which Michigan employers are required to carry workers’ compensation coverage to protect their employees and their own business liabilities.
• All Michigan public employers are required to carry workers’ compensation coverage.
• All private employers who employ one or more employees, 35 hours or more per week, for 13 weeks or longer during the next 52 weeks, are required to carry workers’ compensation coverage.
• All private employers who employ three or more employees, either part-time or full-time, must carry workers’ comp insurance.
• Agricultural employers who staff three or more workers, 35 hours or more a week for 13 or more consecutive weeks, are required to carry insurance.
• Households that employ domestic workers must carry workers’ comp insurance if the household employs anyone for 35 or more hours a week for 13 weeks.
• Self-proprietors, or self-employed individuals, aren’t counted as employees of the business they provide services to. This is because they’re working in their sole proprietorship.

Cases in which employers can exclude certain employees, according to Michigan’s Workers’ Disability Compensation Act

Sole proprietorship

According to the Workers’ Disability Compensation Act, you can exclude employees from coverage if your business has one or more workers, and all workers are the spouse, child, or parent of the sole proprietor.

Partnership

You can exclude employees from coverage if they’re all partners.

Stock corporation

You can exclude employees from coverage if they’re all corporate officers and own 10% or more stock in the corporation.

Limited Liability Corporation (LLC)

You can exclude employees from coverage if they’re all members or managers, and own at least 10% interest in the business.

What employee benefits are covered by Michigan workers’ compensation coverage?

There are various benefits your employees can receive if they experience a work-related illness or injury through workers’ comp coverage. These benefits include:

Supplemental wage benefits

Disability wage benefits are supplemented up to 50 weeks. This supplement will provide two-thirds of the employee’s regular wage at the time of the work-related injury or illness.

Wage supplements may continue longer than the allotted 50-week period in special circumstances with approval from the State Employer.

Employment and benefit status

If your employee can’t return to work after 50 weeks, the wage supplement will end.

The individual may be placed on a medical leave of absence or separated from employment depending on their medical-leave rights under civil service rules and regulations, or based on the collective bargaining agreement.

Independent medical examinations

Sedgwick, which is Michigan’s Workers’ Compensation Third Party Administrator, can schedule an independent medical examination if they have any questions regarding the medical information provided by your employee. The individual must participate in this examination, otherwise, their benefits may be suspended.

Long-term disability

Your employee is only eligible to collect LTD benefits if Sedgwick denies or disputes the workers’ comp claim.

8 essential facts about workers’ comp insurance in Michigan

1. You can find more information on employer insurance requirements with this resource from the Michigan Department of Labor & Economic Opportunity.
2. You can obtain a copy of the Notice of Exclusion form (WC-337) by contacting the Workers’ Compensation Agency (WCA) at 517-284-8922.
3. As an employer, it’s recommended that you scope out various options for workers’ compensation to find the best deal for your business.
4. To submit a workers’ compensation claim, you can apply online or print and fill out a State of Michigan Workers’ Compensation Claim form and fax it into the office.
5. If the work-related injury requires immediate care, the employee should contact the closest emergency room to seek medical treatment.
6. If there’s a non-emergency situation and your employee is seeking medical treatment, the individual must be seen at an approved occupational healthcare clinic.
7. When an injury or illness is reported, the State of Michigan’s Disability Management Office (DMO) will file a workers’ compensation claim on your employee’s behalf. Alternatively, the DMO will provide your employee with the information to file a claim.
8. The state of Michigan has the right to direct medical treatment for the first 28 days after initial care for a work-related injury or illness.

Curious about Michigan’s workers’ comp rates?

Remember, every situation is different. Michigan workers’ compensation laws are subject to change, so be sure to do your research and speak with a trusted advisor.

Please note that this content is intended for educational purposes only. As laws change regularly, refer to your state legislation and/or an advisor for specific legal counsel. If you’re a small business owner, learn more about the basics of workers’ comp or check your current rate in 3 minutes.