Yes, it is OK for drivers to make bus stops using hazard lights. "Hazard Light Stops" are permitted by the State of Michigan. However, there is certain criteria that will qualify a bus stop for Hazard Lights instead of the typical overhead, alternating flashing red lights and stop sign that halts traffic. All hazard light stops must be approved by the Transportation office before implementation. Once approved, they are written into a driver's route instructions.
Motorists are not required to stop for a school bus making a Hazard Light stop. There is some public confusion. Hazard lights are the amber colored lights that drivers normally refer to as "flashers". The "hazard lights" are mounted in the back of the bus mid-way, near the tail lamps. In the front of the bus the hazard lights are mounted near the headlamps or on top of the fenders.
Motorists MUST stop for a school bus that has flashing yellow lights at the top of the bus, both front and back. A driver will activate the alternating flashing yellow lights NO LESS than 200 feet from the bus stop. Once the bus comes to a complete stop the air brake is applied and the door opened. The lights change from alternating flashing yellow to alternating flashing RED upon the opening of the door. This is similar to a traffic signal. The traffic light will turn yellow, warning drivers that it will soon turn red and they must stop. Think of the school bus as a moving traffic signal which must be obeyed.
The State of Michigan Motor Vehicle Code pertaining to Hazard Lights stops can be found in sections 2 (e) and 2 (f). For more information, please take the time to read the law regarding Hazard Light Stops.