Michigan Nursing Home Administrator (NHA) Practice Exam

What is the minimum number of employees a private employer must have for mandatory participation in WCA coverage?

1. 2

2. 3

3. 4

4. 5

The correct answer is: 3

The minimum number of employees that a private employer must have for mandatory participation in Workers' Compensation Act (WCA) coverage is three. Under Michigan law, any private employer with three or more employees is required to carry workers' compensation insurance. This regulation ensures that employees are protected and have access to benefits in the case of work-related injuries or illnesses, fostering a safer work environment. Having only two employees does not trigger the mandatory requirement, which reflects a common understanding that the obligation to provide such coverage scales with the size of the workforce. Employers may still choose to provide coverage with fewer employees, but the legal requirement for participation in WCA coverage only comes into play once there are three or more employees in the organization. This stance is designed to balance the risks and costs associated with workers' compensation claims against the size and capability of smaller businesses.