MI HB5177

Modifies the definition of "employee" under Michigan's Worker's Disability Compensation Act to use a new three-part test (ABC test) for determining whether service providers are employees or independent contractors for services performed after the bill's effective date

Under the new test, a worker is presumed to be an employee unless the employer proves: (1) the worker is free from control and direction, (2) the service is outside the employer's usual course of business, and (3) the worker is customarily engaged in an independent trade or business

Establishes that individuals for whom an employer is required to withhold federal income tax are prima facie considered employees under the act

Explicitly includes aliens "whether lawfully or unlawfully employed" in the definition of employee eligible for worker's compensation benefits

Makes technical and clarifying changes throughout the section, including updating gendered language to gender-neutral terms and standardizing references to "this state" instead of "the state"