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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 111567
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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Regarding the Michigan Professional Investigator Licensure

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Regarding the Michigan Professional Investigator Licensure Act, I have 3 questions:



1. In the paragraph below describing exemptions, does "bona fide employer-employee relationship" include a person working at a business on a corp-to-corp 1099 contract?


 


MCL 338.824 (4)(a) A person employed exclusively and regularly by an employer in connection with the affairs of the employer only, if there exists a bona fide employer-employee relationship for which the employee is reimbursed on a salary basis.


  


2. Would a person working on full-time basis as a contractor for a (non-licensed) business performing computer forensics on exclusively in-house company data only meet the qualifications in MCL 338.826(6)(f)(v) (below.)


 


3. Would activities listed in Question 2 be considered a felony - in other words, would submitting the app to the licensing bureau and admitting to these activities be construed as admission to wrongdoing?


 


MCL 338.826(6)(f)(v) Lawfully engaged in the investigation business as a full-time proprietary or in-house investigator employed by a business or attorney, or as an investigative reporter employed by a recognized media outlet, acceptable to the department. This subdivision does not include individuals employed by educational or charitable institutions who are solely engaged in academic, consulting, educational, instructional, or research activities.

Thank you for your question. I look forward to working with you to provide you the information you are seeing.

1) The MI Courts hold that independent contractors are NOT employees. This means there would be no employer-employee relationship in the situation you describe with a corp-corp 1099 arrangement.

2) If the person can show they are working full time solely for this one company in house, then they would come under Section 338.826(6)(f)(v) if they are not working for anyone other than the in house business.

3) If the person is working as an employee or on a contract only for that one business as an in house investigator then they would not fall under the first exception, but would come under th 826 exception as long as they are exclusive with that one business as in house investigations. If they are not exclusive they could be charged with the felony, but usually they are hit with the civil fine only, especially if the DA does not find any intent to avoid the law and licensing. Here, you seem to be describing your company working exclusively in house for the other company and this would fall under the 826 exception NOT as an employee relationship exception.



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