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The law does not require you to complete a contract with your self-employed or freelance workers - a verbal contract can exist even when there is nothing in writing.
Under Michigan law, independent contractors are not entitled to workers' compensation benefits (unless they carry their own insurance coverage).
With Pandemic Unemployment Assistance (PUA), many people, including those who don't typically qualify for unemployment benefits, such as self-employed workers, independent contractors, low-wage workers and those with limited work history may qualify for PUA.
Sole proprietors only require a workers' compensation policy when they have 1 full time or 3 part-time employees.
Michigan law requires employers to have workers' comp insurance for independent contractors. It only takes 1 employee working 35 hours or longer for 13 weeks or more to trigger this requirement. Failure to have workers' comp could result in civil and criminal penalties. Workers' comp benefits must also still be paid.
Do independent contractors qualify for unemployment insurance? Yes, with the passing of the CARES Act, independent contractors, gig workers, and self-employed individuals are eligible for unemployment insurance if they are unable to work due to COVID-19.
PUA is a temporary federal program that provides up to 50 weeks of unemployment benefits to individuals who are not eligible for regular Unemployment Insurance (UI) such as: Individuals who are self-employed. Certain independent contractors.
Any business with one or more employees is required to carry workers' compensation insurance in Michigan. This policy provides medical benefits for work-related injuries.
With Pandemic Unemployment Assistance (PUA), many people, including those who don't typically qualify for unemployment benefits, such as self-employed workers, independent contractors, low-wage workers and those with limited work history may qualify for PUA.
Be aware that there are exemptions to the state law, such as: Agricultural employers, unless they have three or more employees working more than 35 hours a week for 13 weeks. Domestic workers, like housekeepers. Partners and officers of a partnership and corporation.