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Workers' Compensation by state

Workers' compensation requirements in Michigan

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Direct answer

Does Michigan require workers' compensation insurance?

Yes. Michigan requires workers' compensation coverage once a business has one or more employees (subject to statutory hour and count tests), under the Michigan Worker's Disability Compensation Act. Michigan requires private employers to carry workers' compensation coverage once they meet statutory tests, which generally include regularly employing at least one worker for the required hours or three or more workers at any time.

Reviewed by Cornerstone Staff28 years of financial services state licensing experienceLast verified July 29, 2026

How the mandate works

Michigan requires private employers to carry workers' compensation coverage once they meet statutory tests, which generally include regularly employing at least one worker for the required hours or three or more workers at any time. Coverage is provided through private insurers or an approved self-insurance program.

Coverage trigger
One or more employees (subject to statutory hour and count tests)
If you go without coverage
Failing to carry required coverage can result in fines, possible imprisonment for willful violations, and direct liability for an injured worker's benefits.

Notable exemptions

Exemptions are narrow and fact-specific; confirm your situation with the regulator or an agent before relying on one.

  • Certain small agricultural employers below statutory employee and hour thresholds
  • Some domestic workers in a private home
  • Sole proprietors, partners, and certain LLC members who may elect out

Statutes and sources

  • Michigan Worker's Disability Compensation Act

    Mich. Comp. Laws sect. 418.101 et seq.

Regulator: Michigan Workers' Disability Compensation Agency . Last verified 2026-07-29 from the official source .

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