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HB 5177

Worker's compensation: other; definition of employee; modify to include certain performances of service. Amends sec. 161 of 1969 PA 317 (MCL 418.161).

2025-2026 Regular Session Introduced by Joey Andrews and 26 co-sponsors

Expands workers’ compensation to cover on-call volunteers and public-safety personnel, with benefits based on the state average weekly wage unless their actual wage is higher.

bill electronically reproduced 10/30/2025
#worker'scompensation:benefits #worker'scompensation:other
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Bill Summary · HB 5177

HB 5177 — Summary (Workers' Disability Compensation Act: definition of “employee”)

Status: House introduced (first read Oct 30, 2025); referred to Committee on Economic Competitiveness. Filed March 14, 2025. Companion: SB 2722. Primary sponsor: Rep. Joey Andrews; multiple cosponsors.

Purpose / Intent

HB 5177 amends section 161 of the Workers’ Disability Compensation Act (1969 PA 317; MCL 418.161) to clarify and broaden the statutory definition of “employee.” The bill explicitly includes certain categories of volunteers and on‑call service providers and clarifies wage‑calculation rules for those individuals when entitled to workers’ compensation benefits.

Key provisions

  • Revises the statutory definition of “employee” in the Workers’ Disability Compensation Act to specify that the term includes (or clarifies inclusion of) various on‑call or volunteer public‑service roles when injured performing duties.
  • Explicitly addresses on‑call members of fire departments (paid or unpaid) and sets the presumption that they are receiving the state average weekly wage for purposes of calculating compensation unless their actual average weekly wage is higher.
  • Extends analogous coverage and wage‑calculation treatment to:
    • On‑call members of volunteer underwater diving teams that contract with or receive reimbursement from one or more counties, cities, villages, or townships.
    • Volunteers licensed under sections 20950 or 20952 of the Public Health Code who are on‑call members of life support agencies (including when those agencies contract with or receive reimbursement from local units).
    • Volunteer civil defense workers registered on permanent rosters.
    • Safety patrol officers engaged in traffic regulation for a local unit, provided the legislative body adopts a resolution making benefits available.
  • Restates existing exclusions and conditions:
    • Nationals on certain exchange visas (per the Mutual Educational and Cultural Exchange Act) are not employees under this act.
    • Persons employed by contractors are generally not employees of the contracting governmental unit if the contractor is subject to the act.
    • Municipal police and fire employees (or their dependents) may waive the Act to accept municipal benefits but cannot receive duplicate benefits.
  • Clarifies that volunteers who are unpaid remain eligible for benefits if injured while performing covered duties.

Who is affected

  • On‑call and volunteer public‑safety personnel (firefighters, volunteer diving team members, life support/EMS volunteers, safety patrols, civil defense workers).
  • Local governments (counties, cities, townships, villages, school districts) and their insurers — potential additional exposure for workers’ compensation claims.
  • Contractors and their employees (provisions reiterate limits on treating contractor employees as governmental employees).
  • Exchange-visitor nationals (explicit exclusion preserved).

Potential impact

  • Expands or clarifies coverage for certain unpaid or volunteer public‑service roles, likely increasing workers’ compensation eligibility for injuries sustained while performing duties.
  • May modestly increase costs for municipal employers and insurers due to expanded claim eligibility and wage‑replacement calculations.
  • Provides clearer wage‑calculation rules (state average weekly wage unless employee’s actual wage exceeds it), reducing disputes over benefit amounts.

Procedural notes

  • Public hearing held April 24, 2025; testimony taken and then left pending in committee.
  • Referred to Committee on Economic Competitiveness after first reading (Oct 30, 2025).
  • Companion bill in the Senate: SB 2722.

For precise legal effect and operative text, consult the full amended language of MCL 418.161 as filed.

Compiled from official sources — confirm details with the bill’s official record.

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