Small-business cover in Michigan.
Workers’ comp threshold in Michigan: Required if employer has 3+ employees at any time (including part-time), OR has 1+ employee working 35+ hours/week for 13+ weeks in the preceding 52 weeks[S].
Updated 2026-05-16 · Beaconcover editorialThe short answer: In Michigan, workers' compensation is required if employer has 3+ employees at any time (including part-time), OR has 1+ employee working 35+ hours/week for 13+ weeks in the preceding 52 weeks. Most clients and licenses also ask for general liability before you can take a job.
What does Michigan require?
Required if employer has 3+ employees at any time (including part-time), OR has 1+ employee working 35+ hours/week for 13+ weeks in the preceding 52 weeks[C]
Michigan's Workers' Disability Compensation Act sets dual triggers: employers must carry coverage if they have 3 or more employees at one time (any schedule), or if they regularly employ one or more employees 35+ hours per week for 13 or more weeks during the preceding 52 weeks. Many residential builders and trades require state licensure. Regulated by the Michigan Department of Labor and Economic Opportunity (WDCA).
What licensing and bonding does Michigan require?
- Residential builder/maintenance & alteration contractor licensing applies to many trades
- Coverage thresholds tied to employee hours — verify per situation