Private Employer Workers’ Compensation Disability Act Attorney

Lawyer

In Michigan, all private employers other than agriculture employers, who regularly employ three or more individuals at one time, are subject to the Workers’ Disability Compensation Act. With some minor exceptions an “employee” is defined by Michigan law as follows:

“Every person in the service of another, under any contract of hire, express or implied, including aliens: a person regularly employed on a full time basis by his or her spouse having specified hours of employment at a specified rate of pay; working members of a partnership receiving wages from the partnership respective of profits; a person insured for whom and to whom the extent premiums are paid based on wages, earning or profits; and minors who shall be considered the same as and have the same power to contract as adult employees. Any minor under 18 years of age whose employment at the time of injury shall be shown to be legal, in the absence of fraudulent use of permits or certificates of age in which case only single compensation shall be paid, shall receive compensation double that provided in this Act.”

Law

Section 611 of the Michigan Workers’ Disability Compensation Act requires that all employers under this Actmust secure workers’ compensation coverage.

Section 641 of the Workers’ Disability Compensation Act provides for a fine of $1000 per day and imprisonment in the County Jail for not less than 30 days for failure to comply with this section of the act. In addition to fines that may be levied under Section 641, officers and directors of an uninsured corporation may be held individually and jointly liable for damages. Workers’ compensation insurance may be purchased via policies offered by numerous companies licensed to offer workers’ compensation insurance in Michigan. Employers may apply to the Workers’ Compensation Agency for permission to be “self-insured.” In deciding whether employers may be self-insured, the Agency generally considers a number of factors including how long the company has been in business, its record for safety, and its claims handling. Most important however is the employer’s financial status. The Agency must be sure that the employer has the assets to pay any workers’ compensation claims that may accrue. Bonds and letters of credit are always required as protection against insolvency. To protect workers faced with an insolvent company, the state has created the Self-Insures’ Security Fund.

Failure to provide proof of insurance or acceptance of “self-insured” status may result in a civil fine of not more than $1,000 per day against an employer who has failed at any time immediately preceding three years to comply with Section 611, whether or not the employer is currently in non-compliance.

Contacting Our Attorneys

To contact an attorney about your specific needs as a Michigan uninsured or self-insured employer – call our Grand Rapids, Michigan, Law Offices at 616-774-2131 or contact us online.