Michigan Workers' Compensation laws & compensation compliance analysis

Michigan Workers' Compensation: What you need to know

Virtually all employees must be covered by the Workers' Disability Compensation Act insurance (MI Comp. Laws Sec. 418.101et seq. or MI Stat. Sec. 17.237et seq.). The only exceptions are the following:
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• Those who work for employers that regularly employ fewer than three employees at a time, except that all employees are covered, regardless of the size of the employer, if one of them has worked 35 hours or more per week for that employer for at least 13 of the previous 52 weeks
• Professional athletes whose average weekly wage is more than 200 percent of the statewide average weekly wage
• Domestic servants who work less than 35 hours a week for 13 weeks a year
• Real estate salespersons
Employers may elect to cover employees for whom coverage is not required.
“No-fault” system. Workers' compensation is a no-fault system. Unlike traditional legal mechanisms for compensating accident victims--that limit recovery to cases in which the victim's injuries result from some other person's negligence--workers' compensation laws allow employees to collect without regard to fault, simply by showing that the injury arose “out of and in the course of employment.” Compensation is guaranteed in such cases. It doesn't matter that the employee (or a coworker) was partly at fault, nor does it matter that the employee knew the job was risky. “Contributory negligence,” “assumption of risk,” and other defenses normally used by defendants in accident cases do not apply to on-the-job injuries. In return for this guarantee of compensation, employees give up the right to sue the employer for damages, thus effectively limiting the employer's liability for workplace injuries.
The term “injury” has a ...

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