MI HB5007

Establishes a new "ABC test" for classifying workers as employees effective January 1, 2026, requiring individuals performing services for a hiring entity to be classified as employees unless they are a separate business entity or meet all three criteria: free from control and direction, performing work outside the hiring entity's usual course of business, and customarily engaged in an independently established trade or business

Retains the existing IRS 20-factor test for determining employer-employee relationships for services performed between January 1, 2013 and December 31, 2025

Creates a presumption that individuals from whom an employer is required to withhold federal income tax are performing services in employment under the act

Applies retroactively to services performed on or after January 1, 2021

Makes technical and clarifying amendments throughout the Michigan Employment Security Act, including updating terminology from "shall be" to "is" and adding "insurance" to references to the unemployment agency