If you’re a Michigan employer looking to protect both your business and your team, you’re in the right place. At Beyond, we provide the essential information you need to understand how workers’ compensation works and how to stay compliant in 2026.
Workers’ comp isn’t just a benefit for employees, it’s a smart safeguard for employers, too. It helps pay for medical care and provides wage-loss benefits when an employee has a work-related injury or illness. For employers, having coverage in place reduces risk and helps ensure claims are handled within the workers’ compensation system.
Under Michigan’s Workers’ Disability Compensation Act, employers must secure coverage if they meet any of the following thresholds:
Private employers that regularly employ 1+ employee who worked 35+ hours/week for 13+ weeks during the preceding 52 weeks.
Private employers that regularly employ 3+ employees at one time (this includes part-time employees).
Agricultural employers that employ 3+ employees who worked 35+ hours/week for 13+ consecutive weeks.
Households employing domestic workers 35+ hours/week for 13+ weeks during the preceding 52 weeks.
All public employers.
Who counts as an “employee”?
Michigan guidance explains that partners are considered employees of the partnership, corporate officers are considered employees of the corporation, and an LLC member who is a manager is considered an employee of the LLC. A sole proprietor working in their own sole proprietorship is not an employee of that business.
Instead of a broad “exemption list,” Michigan commonly uses a Notice of Exclusion (WC-337) for certain owner-only structures when all workers can be excluded and no subcontractors are used in the operation of the business.
Michigan’s official guidance lists examples of employers that may use an exclusion form, including:
Partnerships where all employees are partners
Stock corporations where all employees are corporate officers and each owns 10%+ of the stock
LLCs where all employees are members who are also managers and each owns 10%+ interest
Certain sole proprietorship family-only employment situations
Important (fix to your draft): WC-337 is not available online; to confirm eligibility and request the form, Michigan directs employers to contact the Compliance & Employer Records Division.
Michigan workers’ compensation generally includes:
Medical benefits
Covers reasonable and necessary medical treatment related to a work injury or illness.
Wage-loss benefits
There’s a 7-day waiting period. If wage loss lasts more than 7 consecutive days, benefits begin on day 8; if wage loss lasts 14 days or longer, the employee is entitled to payment for that first week as well.
Vocational rehabilitation
May include support to help an employee return to suitable work.
Death benefits
If an employee dies from a work-related injury or disease, Michigan requires the employer to pay reasonable last-sickness, funeral, and burial expenses, up to $6,000 (or actual cost, whichever is less), and provides benefits for eligible dependents.
If an employee is injured and needs treatment, Michigan guidance states:
During the first 28 days of treatment, the employer has the right to choose the doctor.
After that, the employee may change doctors as long as they notify the employer and the insurance company (preferably in writing).
(This replaces the “company-designated physician for non-emergencies” line in your draft with Michigan’s actual rule.)
Michigan employers can satisfy coverage requirements by:
Purchasing a policy from a licensed insurance carrier
Using the assigned risk pool via the Compensation Advisory Organization of Michigan
Securing coverage through an approved self-insured group fund or becoming an approved individual self-insurer (with state authorization)
Filing a valid WC-337 exclusion (only when eligible)
If an employer does not obtain insurance or authorization to self-insure, Michigan notes serious penalties, including:
A fine of up to $1,000 and/or imprisonment from 30 days to 6 months; each day uninsured can be treated as a separate offense
If the employer is a corporation, officers and directors can be personally liable for unpaid obligations under the Act
Employee notice deadlines (key correction):
Michigan law requires the employee to give the employer notice of injury within 90 days (in most situations).
Claim timing:
Michigan guidance states employees generally have up to 2 years from the date of injury (or when disability manifests) to bring a claim, with important details that can affect back benefits if filed later.
Employer reporting (key correction):
Michigan’s WC-100 form states an employer shall report immediately to the agency on Form WC-100 all injuries (including diseases) that arise out of and in the course of employment or on which a claim is made.
If the employer doesn’t file / employee needs to file:
Employees can use Form WC-117 (Employee’s Report of Claim) to report a claim.
Workers’ compensation is more than a legal box to check. It’s a way to protect your business and show employees you take their safety seriously. With the right policy (or valid exclusion where allowed), you reduce financial risk and build a stronger workplace.
Need help getting started? The team at Beyond is ready to help you explore coverage options and stay compliant in 2026.
