Michigan Workers' Compensation: When 35 Hours a Week Triggers Employer Obligations

Threshold for Coverage in Michigan

In Michigan, any employee who works 35 or more hours in a typical workweek is automatically covered by the state's workers' compensation system. This rule applies regardless of job title, contract type, or whether the worker is full‑time or part‑time, as long as the weekly hours meet or exceed the 35‑hour benchmark.

Employer Obligations Once the Threshold Is Met

When an employee reaches the 35‑hour mark, the employer must:

• Register with the Michigan Workers' Compensation Agency (MWCA) and obtain a policy or self‑insurance certificate.
• Pay the required premium, which is calculated based on the employer's payroll and the industry's classification rates.
• Maintain accurate records of hours worked, wages, and any workplace injuries.
• Provide the employee with a workers' compensation notice and a copy of the policy.

Exemptions and Special Cases

Some workers are exempt from mandatory coverage even if they exceed 35 hours per week. Exempt categories include:

• Independent contractors who control their own work schedule and are not subject to employer direction.
• Family members of the business owner who are not formally hired.
• Certain agricultural workers covered under a separate agricultural workers' compensation program.

Employers must carefully assess the worker's status; misclassification can lead to penalties and retroactive premium assessments.

Premium Calculation Overview

Premiums are not a flat rate; they vary by:

• Industry classification (e.g., construction vs. office work).
• Total covered payroll.
• Employer's loss history and safety record.

Employers can reduce costs by implementing safety programs that lower the experience modification factor (EMR).

Reporting an Injury

If a covered employee is injured, the employer must file a First Report of Injury within three days of learning about the incident. Failure to report on time can result in fines and loss of coverage.

Comparison of Coverage Thresholds

Key Takeaways for Employers

• Track weekly hours precisely; 35 hours triggers mandatory coverage.• Verify worker classification to avoid costly errors.• Register with MWCA promptly and keep premium payments current.• Maintain injury documentation and report promptly.