Restaurant Workers' Comp in Michigan
What Michigan requires of restaurants and bars for workers' compensation — when it kicks in, who's exempt, and what it costs.
Reviewed by J. Robert Smith, Licensed Insurance Agent (NPN 10378680). Last updated .
Yes, in most cases. Michigan requires workers' compensation for any private employer regularly employing three or more workers at one time, or employing one or more workers 35+ hours per week for 13 weeks or longer during the preceding 52 weeks. Nearly every restaurant meets one trigger, so coverage is effectively mandatory.
- Required?
- Yes
- Kicks in at
- 3 or more employees at one time, OR fewer than 3 but at least one employee has worked 35 or more hours per week for 13 weeks or longer during the preceding 52 weeks (MCL 418.115).
- Restaurant rate
- Michigan is an open-competition state; the Compensation Advisory Organization of Michigan (CAOM) publishes advisory pure premiums and restaurants are classified under Michigan class code 9058 (all restaurant types), while insurers file their own rates. For reference, national NCCI codes 9082/9083 run roughly $1.03–$1.06 per $100. Approximate, industry tier.
- Market
- Competitive open-competition private market — employers buy from private insurers, group self-insurance funds, or qualify as individual self-insurers; Michigan has no monopolistic state fund.
Is workers’ comp required for a restaurant in Michigan?
Michigan requires workers' compensation once you reach 3 or more employees at one time, OR fewer than 3 but at least one employee has worked 35 or more hours per week for 13 weeks or longer during the preceding 52 weeks (MCL 418.115).. Sole proprietors, partners, and (per agency rules) LLC members and certain corporate officers may exclude themselves as owners but must cover non-owner employees. Agricultural employers are covered only under separate, higher thresholds; very small non-agricultural employers below both triggers fall outside the Act.
What restaurant workers’ comp costs in Michigan
The restaurant class-code rate in Michigan is Michigan is an open-competition state; the Compensation Advisory Organization of Michigan (CAOM) publishes advisory pure premiums and restaurants are classified under Michigan class code 9058 (all restaurant types), while insurers file their own rates. For reference, national NCCI codes 9082/9083 run roughly $1.03–$1.06 per $100. Approximate, industry tier.. Your premium is that rate applied per $100 of payroll and adjusted by your experience modifier, so it scales with how many people you employ and your claims history. Competitive open-competition private market — employers buy from private insurers, group self-insurance funds, or qualify as individual self-insurers; Michigan has no monopolistic state fund.
What owners in Michigan miss
- Michigan's unusual part-time trigger means a business with only one or two employees still needs coverage if any single employee works 35+ hours per week for 13 weeks or longer within the prior 52 weeks — a rule most owners would not guess.
- Public employers must carry coverage regardless of the number of employees, and agricultural employers are governed by separate 35-hour/13-week and medical-only thresholds under MCL 418.115.
- Michigan uses its own restaurant classification (9058) through CAOM rather than the NCCI 9082/9083 codes, and rates are set by competition rather than a single approved manual rate.
- Failure to carry required coverage can expose an employer to civil fines and criminal misdemeanor penalties and strips away the exclusive-remedy protection, letting injured employees sue the employer directly.
Sources
- Michigan Legislature: MCL 418.115 — Worker's Disability Compensation Act; coverage / application to employersprimaryretrieved 2026-07-27
- Michigan Dept. of Labor and Economic Opportunity (WDCA): Employer Frequently Asked Questions (WDCA)primaryretrieved 2026-07-27
- Compensation Advisory Organization of Michigan (CAOM): Assigned Risk Rates and Rating Values (class code 9058)industryretrieved 2026-07-27
Cost examples are illustrative national figures gathered from public filings and industry surveys. They are not quotes. Your actual premium depends on your state, carrier, revenue, payroll, location, and coverage selections. Restaurant Insurance Authority is an insurance marketing and referral service, not an insurer or licensed agency. We connect business owners with licensed independent commercial-lines agents who specialize in food and beverage. Questions? Call (855) 480-1410.
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