State RegulationsMI specificDifficulty 2/5
A Michigan manufacturer with 60 full-time-equivalent employees asks whether Michigan's small-employer eligibility rules protect its group. What applies?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
M.C.L. 500.3701(q) caps the small-employer definition at 50 full-time-equivalent employees, so a 60-employee manufacturer is outside it, and the eligibility obligations of M.C.L. 500.3707 attach to small employers. The employer's coverage is governed by other law and its contract, not the small-employer framework, and no election or forced split changes that.
Why the other options are wrong
- A) 60 exceeds the 50-employee ceiling, so the small-employer rules do not reach this group.
- C) Small-employer status is set by headcount under M.C.L. 500.3701(q), not by employer election.
- D) Splitting a workforce to evade or invoke definitions is not part of Michigan's small-employer scheme.
Memory hook
Over 50 FTEs — Michigan's small-group rules step aside.