A warning about small business owners in Michigan who fail to purchase required workers compensation insurance.
We previously announced a social media campaign to encourage insurance companies to refund money to small business owners. This was in response to a 28% drop in the pure premium rate over the last several years.
Small business owners account for a huge number of jobs in our economy. Any cost savings from reform efforts must be passed directly to these individuals.
A small number of business owners try to game the system and don’t purchase workers compensation insurance. This is a cost cutting measure and it is very short-sighted.
Employers required to purchase workers compensation
All private employers, other than agricultural employers, who regularly employ 3 or more employees at 1 time.
All private employers, other than agricultural employers, who regularly employ less than 3 employees if at least 1 of them has been regularly employed by that same employer for 35 or more hours per week for 13 weeks or longer during the preceding 52 weeks.
All public employers.
Householders employing domestic servants if they employ anyone 35 hours or more per week for 13 weeks or longer during the preceding 52 weeks.
Penalties for non-compliance
Failure to obtain workers compensation insurance is a misdemeanor. Penalties include a fine of $1,000 and possible imprisonment up to 6 months. Each day’s failure is a separate offense.
An employer who fails to purchase workers compensation is not off the hook. Payment of wage loss and medical benefits is still required. Officers of the company can be held personally liable.
In addition, an employer loses the protection of the exclusive remedy provision and can be sued for negligence.
Michigan Workers Comp Lawyers never charges a fee to evaluate a potential case. Our law firm has represented injured and disabled workers exclusively for more than 35 years. Call (855) 221-2667 for a free consultation today.