MI HB5962

Amends the Worker's Disability Compensation Act to establish standards for determining when individuals should be classified as employees rather than independent contractors in commercial carrier and construction industries.

Principals are liable for worker's compensation to contractor employees not covered by the Act unless the principal demonstrates to the director that the contractor meets specific criteria, including being free from direction and control of the principal.

Establishes criminal penalties for knowingly misclassifying employees as contractors: up to 18 months imprisonment or $15,000 fine for first offense; up to 7 years imprisonment or $30,000 fine for subsequent offenses.

Authorizes the director to issue stop-work orders within 72 hours of determining a violation, with daily penalties of $1,000 per day for continued operations, and allows debarment from public contracts for up to 3 years.

Permits misclassified workers, unions, and organizations to bring civil actions for damages and attorney fees; prohibits retaliation against workers who file complaints; and establishes administrative penalties of $2,500 for first violations and $5,000 for subsequent violations.