Bill > HB5177

This bill amends the Worker's Disability Compensation Act to modify the definition of "employee" in several significant ways. The bill expands the definition to include various types of workers such as on-call members of fire departments, volunteer underwater diving teams, safety patrol officers, volunteer civil defense workers, and on-call members of life support agencies. The bill also adds a new provision (subdivision p) that establishes criteria for determining whether a person performing a service is considered an employee, which includes three key tests: the person must be free from the employer's control, the service must be outside the usual course of the employer's business, and the person must be customarily engaged in an independent trade or profession. Additionally, the bill clarifies that the definition now explicitly includes aliens whether lawfully or unlawfully employed, and modifies language around how workers' compensation applies to various public service roles, including those in federally funded training or work experience programs. The bill allows certain small business owners, such as members of limited liability companies or corporate stockholders with at least 10% ownership, to elect to be excluded from workers' compensation coverage under specific conditions.

Government Affairs

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-5177