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A Pink Cadillac Clarifies Independent Contractors are Employers and Employees of Themselves

Motor Vehicle Litigation / August 10, 2020

There are currently no articulated requirements for classifying an independent contractor as both an employer and employee for purposes of analyzing the application of the employer-furnished vehicle exception of MCL 500.3114(3). Besic held plaintiff, an independent contractor, to be a self-employed employee of himself without articulating any standards. In extrapolating the lack of analysis in Besic, the Court in Alghali determined, in an unpublished decision, that independent contractors were always employees and employers of themselves as it relates to the employee-furnished vehicle exception of MCL 500.3114(3).

When analyzing policy provisions excluding PIP benefits, one should look to whether the legislative intent of Michigan’s No-Fault Act is being served. If not, such exclusions may be declared void as against public policy.

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