Michigan's At-Will Employment: What You Need to Know
Discover the default employment standard in Michigan and the critical exceptions that can protect both employees and employers
every industry needs a leader
•
empower the leader in you
•
every industry needs a leader • empower the leader in you •
In the United States, the vast majority of states operate under the doctrine of "at-will" employment, and Michigan is no exception. This fundamental principle shapes the relationship between employers and employees, granting significant flexibility to both parties. However, while at-will employment is the default, it is not absolute and is subject to crucial exceptions and limitations that are vital for both employers and employees to understand.
The Foundation of At-Will Employment
At its core, at-will employment means that either the employer or the employee can terminate the employment relationship at any time, for any reason, or for no reason at all, with or without notice. This provides a high degree of freedom. An employer can decide to let an employee go for seemingly arbitrary reasons, such as a personality conflict or a business downturn, as long as the reason is not illegal. Similarly, an employee is free to resign from their position at any time without needing to provide a justification. This doctrine is deeply rooted in contract law, presuming that in the absence of a specific agreement to the contrary, the employment relationship is indefinite and thus terminable at will.
Key Exceptions to At-Will Employment in Michigan
While the at-will presumption is strong, Michigan law, like federal law, recognizes several important exceptions that limit an employer's ability to terminate an employee. These exceptions are designed to protect employees from truly unfair or discriminatory practices.
1. Contractual Agreements
The most direct way to overcome the at-will presumption is through an express or implied contract. An express contract, either written or oral, can specify a definite term of employment or state that an employee can only be terminated for “just cause”. If such a contract exists, the employer is bound by its terms and cannot terminate the employee at will.
Furthermore, implied contracts can arise from employer statements, company policies, or even long-standing practices. For example, if an employee handbook outlines specific disciplinary procedures that must be followed before termination, Michigan courts may interpret this as an implied promise of job security, requiring the employer to adhere to those procedures. Similarly, oral assurances of job security made by a supervisor could, in certain circumstances, form an implied contract.
2. Public Policy Exception
Michigan recognizes a public policy exception to at-will employment. This exception prevents an employer from terminating an employee for reasons that violate a clearly established public policy of the state. Common examples include:
Refusing to commit an illegal act: An employee cannot be fired for declining to engage in unlawful conduct at the employer's request.
Exercising a statutory right: Employees are protected from termination if they are exercising a legal right, such as filing a workers' compensation claim, reporting workplace safety violations (whistleblowing), or serving on a jury.
Reporting a suspected violation of law: The Michigan Whistleblowers' Protection Act specifically shields employees who report a suspected violation of a law, regulation, or rule to a public body.
3. Anti-Discrimination Laws
Both federal and Michigan state laws prohibit termination based on protected characteristics. The Michigan Elliott-Larsen Civil Rights Act is particularly broad, prohibiting discrimination in employment based on:
Religion
Race
Color
National origin
Sex (including sexual orientation and gender identity)
Age
Marital status
Height
Weight
If an employee can demonstrate that their termination was motivated by discrimination based on one of these protected characteristics, it constitutes wrongful termination, regardless of the at-will doctrine.
4. Retaliation
Employers are generally prohibited from retaliating against an employee for engaging in protected activities. This includes, but is not limited to, reporting discrimination or harassment, participating in an investigation, or filing a complaint with a government agency. Termination in retaliation for such activities is illegal.
Conclusion
While at-will employment is indeed the default rule in Michigan, it is not an unfettered right for employers to terminate employees without consequence. The numerous exceptions, particularly those related to contracts, public policy, and anti-discrimination laws, provide crucial protections for employees. Both employers and employees in Michigan should be aware of these nuances to ensure their rights and obligations are properly understood within the employment relationship.
Information published to or by The Industry Leader will never constitute legal, financial or business advice of any kind, nor should it ever be misconstrued or relied on as such. For individualized support for yourself or your business, we strongly encourage you to seek appropriate counsel.
