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Michigan Workers Compensation Laws

Workers compensation law, rules and policy information for the State of Michigan

Related Pages:  More About Michigan Rules


State:  Michigan

Authority/Rating Bureau:  Compensation Advisory Organization of Michigan, CAOM. This is a non-NCCI state. Contact at:

Compensation Advisory Organization of Michigan
Street address: 17197 N. Laurel Park Drive, Suite 311, Livonia, MI 48152
Mailing Address: P.O. Box 3337, Livonia, MI 48151-3337
http://www.caom.com/

Compulsory:  Yes

Private Insurance:  Allowed

Self-Insurance:  Allowed

State Fund:  There is a competitive state fund.

Assigned Risk:  The Michigan Workers’ Compensation Placement Facility, operated by CAOM. Contact at:

MICHIGAN WORKERS’ COMPENSATION PLACEMENT FACILITY
P.O. Box 3337 
Livonia, MI 48151-3337
(734) 462-9600  Fax (734) 462-9721
http://www.caom.com/



Numerical Exceptions:  Certain very small employers are exempt. If a private employer has three or more employees at any one time, or employs one or more workers for 35 or more hours per week for 13 or more weeks, the employer is subject to the Workers’ Disability Compensation Act. (Section 115).

Individual Waivers Allowed:  Yes

Small Deductible Program:
  • Allowed:  Yes - See Note Below
  • Deductible Range:  See Note Below
  • Type:  Unknown
  • Effect on Experience Rating:  Gross
  • Available In:  Unknown
  • Special Note:  Michigan allows individual insurance carriers to file various deductible plans for use in Michigan upon approval.
  • For More Information About How Deductible Programs Work

Sole Proprietor:  Excluded from coverage. Michigan rules indicate the sole proprietor is "self-employed" thus is excluded from coverage. However fixed amount for spouse of sole proprietors is $18,200 as of 1-1-2014, $18,300 as of 1-1-2015.

Partners:  Included in coverage/may elect to be excluded - see corporation notes below. Payroll used for partners is $17,900 annual as of 1-1-11, $18,000 as of 1-1-2012, $18,200 as of 1-1-2014, $18,300 as of 1-1-2015.

Corporate Officers:  Included in coverage/may elect to be excluded - The employees of partnerships and corporations are covered. However, Section 161 of the Act provides that under certain circumstances named partners and officers who are also shareholders of small, closely-held corporations may exempt themselves from the Act. Firms which wish to exclude partners or officers of a corporation but have other employees can do this by making arrangements with their insurance company. Firms in which all of the employees are either partners or owners of a small corporation may obtain a certificate of their exemption under the Act by contacting the Insurance Division of the agency. Rating payroll when included is a minimum of $414 per week and a maximum of $1,700 per week as of 1-1-11, $412 / $1,600 as of 1-1-2012, $430 / $1,700 as of 1-1-2013, $443 / $1,800 as of 1-1-2014, $447 / $1,800 as of 1-1-2015.

LLC Members:  Included in coverage/ An active member with no more than 10 members owning a min of 10% of company may elect to be exempt. When included rating payroll used is a minimum of $414 per week and a maximum of $1,700 per week as of 1-1-11, $412 / $1,600 as of 1-1-2012 and $430 / $1,700 as of 1-1-2013, $443 / $1,800 as of 1-1-2014, $447 / $1,800 as of 1-1-2015.

Election or Rejection of Coverage Form:  Michigan Coverage Exclusion and Inclusion Forms and Instructions - This link will take you to a Michigan Workers Compensation website page. Once there scroll down to Form WC-337 Notice of Exclusion and Form WC-338 Notice to Terminate Exclusion.

A Note About Forms:  Be sure to contact your insurance company for information about additional forms they may use for exclusion or inclusion of coverage.



Contractors:  If one company hires another company to come in and do some work for it, the second company is ordinarily an “independent contractor” and not an employee of the first company. Sometimes, however, a company hires one person to come in and perform a specific job and disputes arise as to whether or not that person is an employee or an independent contractor. Section 161(1)(n) of the Act states that if the worker does not maintain a separate business, does not hold himself or herself out to and render service to the public, and does not employ other workers, the worker will be considered an employee.

Special Notes:  There are a few classes of workers who are covered by federal laws and are not covered by the Workers’ Disability Compensation Act of Michigan. Employees of the federal government (such as postal workers, employees at a veterans administration hospital, or members of the armed forces) are covered by federal laws. People who work on interstate railroads are covered by the Federal Employers Liability Act. Seamen on navigable waters are covered by the Merchant Marine Act of 1920, and people loading and unloading vessels are covered by the Longshoremen’s and Harbor Workers’ Compensation Act. Virtually all other workers and employers are subject to Michigan’s law. Agricultural employees are exempt under certain special circumstances. An agricultural employer, however, may voluntarily cover its workers. Section 161(2) of the Act provides that certain family members of an employer may be excluded from the Act.

Michigan Workers Compensation Subrogation:  Statute 418.827 is the Michigan statue that describes subrogation for workers compensation within the State. Section 827 is titled "Third Party Liability" and can be viewed easily online. You'll find a link below that will take you directly to Michigan 418,827. Michigan Statute About Subrogation

Michigan Workers Working In Other States; Other States Workers Working In Michigan, Extraterritorial, Reciprocity and Non-Compliance:  If Michigan workers are working temporarily in another state, then workers compensation coverage for that worker is governed by the extraterritorial provisions found in Michigan statutes. When allowed, extraterritorial provisions allow benefits for an injured worker to apply as if the worker was in their primary state. Not all states provide Extraterritorial Provisions. It's reciprocity that governs coverage for a worker from another state who is working temporarily in Michigan. If a worker received benefits under the laws of another state or jurisdiction the amount recovered under the law of the other state, whether paid or to be paid in future installments, shall be credited against the benefits payable under the Michigan act. This is commonly known as a credit or offset. Compliance of workers compensation laws varies from state to state and it is important for an employer with workers performing duties in other states to be aware of the specific state rules that govern their coverage. We've provided the below general information about extraterritorial and reciprocity as a basic guide. Please contact your state authority with your specific questions concerning this topic!

  • Extraterritorial: 
    • Provisions: Yes
    • Duration: Not Specified
  • Reciprocity: 
    • Allowed: No
  • Specific Statute:  Michigan 418-845;
  • Specific Statute:  Michigan 418-846;
  • For More Information Contact:  Michigan Workers Compensation Agency shown below.




Regulated By: 

Workers Compensation Agency
State Secondary Complex
General Office Building
7150 Harris Drive, 1st Floor, B-Wing,
Dimondale, Michigan 48821.
1-888-396-5041

Mailing address:
Workers' Compensation Agency
P.O. Box 30016
Lansing, Michigan 48909.
http://www.michigan.gov/wca/

Workers Compensation Statute: 

Michigan Workers Compensation Statute


Didn't find what you're looking for? Search here for more about Michigan rules: 



Information on this page is provided only as a reference. While we strive to mantain accurate information on this site please realize workers compensation laws are complicated and subject to change at any time. No warranty as to the accuracy or completeness of this information is provided or to be implied. You must verify this data before use with the individual governing authority for this state. If you need help with a workers compensation problem or have a specific situation or question please contact our office. Otherwise please consult your states governing authority or an attorney in your state of residency for assistance.





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