In Michigan, the majority of employment relationships are considered at-will, which 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. This concept gives employers considerable flexibility in managing their workforce, as they are generally not required to provide advance notice or justify their decision to fire an employee. Similarly, employees can also leave their jobs without facing legal repercussions.

However, at-will employment is not without limitations. While employers have the freedom to terminate workers, they must still operate within the boundaries of the law. This means that an employer cannot fire an employee for illegal reasons, such as discrimination or retaliation, which is where wrongful termination laws come into play.

Exceptions to At-Will Employment

While at-will employment allows for broad discretion in firing employees, there are several critical exceptions that make certain terminations illegal. These exceptions include:

• Violations of Public Policy: Employers cannot terminate an employee for reasons that violate public policy. For example, firing an employee for refusing to engage in illegal activity, for exercising their legal rights (such as filing for workers' compensation), or for reporting illegal activities or workplace violations (whistleblowing) would be considered wrongful termination.
• Employment Contracts: If an employee has an employment contract or other formal agreement outlining the terms of their employment, the employer must adhere to the provisions in that contract. If the contract specifies that an employee can only be terminated for cause, or that termination requires advance notice, firing the employee in violation of those terms could result in a wrongful termination claim.
• Illegal Discrimination: One of the most important exceptions to at-will employment involves discrimination. Federal and Michigan state laws, such as the Elliott-Larsen Civil Rights Act, protect employees from being fired based on protected characteristics such as race, gender, age, religion, disability, or national origin. If an employee is terminated for any of these reasons, the termination would be considered illegal, and the employee may have grounds for a wrongful termination lawsuit.

Common Grounds for Wrongful Termination

Discrimination

Under both federal law and Michigan’s Elliott-Larsen Civil Rights Act, it is illegal for an employer to terminate an employee based on certain protected characteristics. Firing an employee due to discrimination is one of the most common forms of wrongful termination. Protected characteristics include:

• Race or ethnicity
• Gender or sex, including pregnancy and gender identity
• Age, for employees 40 years or older
• Religion
• Disability (under the Americans with Disabilities Act)
• National origin

For example, if an employer fires an employee because they belong to a certain racial group, or because the employee requested a reasonable accommodation for a disability, this would constitute unlawful discrimination. Both federal laws (such as Title VII of the Civil Rights Act of 1964) and Michigan state laws protect employees from such discriminatory practices. Terminations based on any of these protected characteristics can lead to a wrongful termination claim.

Retaliation

Employees are also protected from being terminated in retaliation for engaging in legally protected activities. This includes situations where an employee reports workplace misconduct, files a complaint, or participates in an investigation or legal proceedings. Common examples include:

• Whistleblowing: If an employee reports illegal activities or violations of health and safety regulations within the company (e.g., fraud, environmental hazards), they cannot be fired in retaliation for raising those concerns.
• Filing for workers' compensation: Employees who are injured on the job and file a workers’ compensation claim cannot be terminated because of their filing. Retaliatory firings for exercising this legal right are unlawful.
• Participating in investigations: Employees who cooperate with workplace investigations, such as harassment investigations, are protected from retaliation by their employer.

Violation of Public Policy

Termination that violates public policy is another common ground for wrongful termination. Public policy is the principle that employees should not be fired for performing actions that benefit the public or for refusing to perform illegal activities.

Examples of public policy violations include:

• Refusal to commit an illegal act: If an employer asks an employee to engage in illegal activities (such as falsifying records or breaking safety regulations) and the employee refuses, firing them as a result would be a violation of public policy.
• Exercising a legal right: Terminating an employee for taking legally mandated time off, such as jury duty or military leave, would be considered wrongful under public policy protections.

Breach of Contract

In some cases, employees have employment contracts or implied agreements that outline the terms of their employment, including conditions for termination. These agreements may include stipulations about how and when termination can occur, such as requiring just cause or providing advance notice.

• Employment contracts: If an employee is fired in violation of the terms outlined in their contract (for instance, if a contract states that termination must be for just cause, and the employer cannot provide valid cause), the termination may be considered a breach of contract and therefore wrongful.
• Implied agreements: In some situations, there may be an implied contract between the employer and employee based on the nature of their relationship. This could be established through employer promises, employee handbooks, or other written or verbal agreements that suggest the employee cannot be fired without cause.

Steps to Take if You Suspect Wrongful Termination

Document the Termination

The first step in addressing wrongful termination is to gather and preserve any evidence related to your termination. Documentation is key to building a strong case.

• Termination letters: Keep any formal termination letters or notices provided by your employer. These documents may indicate the reason for your termination and provide evidence of any discriminatory or retaliatory motives.
• Emails and communications: Save all email communications or written correspondences between you and your employer that could be relevant to your termination. These may include emails from supervisors or HR that discuss your job performance, workplace complaints, or the events leading up to your termination.
• Performance reviews: If your employer has claimed that your termination is based on poor performance, gather copies of your recent performance reviews. Positive reviews or feedback could help disprove the employer’s stated reason for termination and suggest an illegal motive, such as discrimination or retaliation.
• Witness statements: If co-workers witnessed discriminatory behavior or overheard conversations that indicate illegal motives behind your termination, consider asking them to provide statements.

Review Employment Contracts and Policies

If you have a formal employment contract or if your company has policies outlined in an employee handbook, review these documents carefully.

• Employment contract: Check your employment contract to see if it contains any provisions regarding termination, such as a requirement for just cause or a specific termination process. If your employer violated these terms, you may have grounds for a breach of contract claim in addition to wrongful termination.
• Company policies: Many companies have policies that outline disciplinary procedures, termination processes, or guidelines for workplace conduct. If your termination deviates from these established policies, it may suggest improper motives or wrongful termination. Compare your termination to the procedures outlined in the employee handbook to identify any inconsistencies.

File a Complaint with the EEOC or MDCR

If you believe your termination was the result of discrimination, retaliation, or another unlawful action, you may need to file a formal complaint with a government agency.

• Equal Employment Opportunity Commission (EEOC): The EEOC handles claims related to violations of federal anti-discrimination laws, including wrongful termination based on race, gender, age, disability, religion, or other protected characteristics. You can file a complaint with the EEOC to initiate an investigation into your employer's actions.
• Michigan Department of Civil Rights (MDCR): If your claim involves a violation of Michigan's Elliott-Larsen Civil Rights Act or other state laws, you can file a complaint with the MDCR. The MDCR enforces Michigan's anti-discrimination laws and can investigate claims related to wrongful termination due to discrimination or retaliation.
• Time limits: Be aware that both the EEOC and MDCR have specific deadlines (statutes of limitations) for filing complaints, typically 180 days to 300 days after the termination. Filing within these deadlines is crucial to preserving your claim.

Consult an Attorney

Given the complexity of wrongful termination cases, consulting an experienced employment law attorney is highly recommended.

• Legal evaluation: An attorney can help you evaluate the circumstances of your termination and determine whether your employer violated federal or state laws. They will assess your documentation, employment contract, and the details of your case to provide guidance on the best course of action.
• Navigating legal complexities: Wrongful termination claims can involve complicated legal processes, especially if they include discrimination, retaliation, or contract disputes. An attorney can help navigate these complexities, file claims with the appropriate agencies, and represent you in negotiations or litigation.
• Maximizing compensation: In addition to securing back pay and lost wages, an attorney can help you pursue compensation for emotional distress, legal fees, and, in some cases, punitive damages.

Legal Remedies for Wrongful Termination

Reinstatement

One of the primary remedies in a wrongful termination case is reinstatement to the employee’s previous position. If the court or legal proceedings determine that the termination was unlawful, the employee may be entitled to return to their former role.

• Returning to work: In cases where the employee wants to return to their job, reinstatement allows them to continue their career as if the wrongful termination had never occurred.
• Restoration of seniority and benefits: When reinstated, the employee’s seniority, benefits, and status are typically restored. This ensures that the time they were wrongfully terminated does not negatively affect their standing within the company.

However, reinstatement is not always a practical solution, especially if the employee’s relationship with the employer has been severely damaged. In these cases, other remedies, such as financial compensation, may be more appropriate.

Back Pay and Lost Wages

Victims of wrongful termination are often entitled to back pay, which compensates them for the wages they would have earned had they not been wrongfully terminated. This remedy can include compensation for:

• Lost wages: Back pay covers the income the employee lost between the time of their wrongful termination and the resolution of the case. This includes not only salary but also any bonuses, commissions, or other compensation they would have earned during that period.
• Lost benefits: In addition to wages, employees may be entitled to compensation for the loss of benefits, such as health insurance, retirement contributions, and other benefits that were part of their employment package.
• Future lost earnings: In some cases, if the employee is unable to find comparable employment after their termination, they may also be entitled to future lost wages, which can compensate them for the ongoing financial impact of the wrongful termination.

Damages for Emotional Distress

Wrongful termination can cause significant emotional harm, including stress, anxiety, depression, and damage to the employee’s professional reputation. Employees may be entitled to damages for emotional distress caused by the unlawful termination.

• Mental anguish: Victims of wrongful termination can seek compensation for the mental and emotional pain they experienced as a result of being wrongfully fired. This can include the stress of financial uncertainty, loss of self-esteem, and the emotional toll of being unjustly removed from their position.
• Loss of reputation: In some cases, wrongful termination can damage an employee’s professional reputation, making it difficult to find new employment. Employees may seek compensation for the harm caused to their standing in their industry or profession.
• Non-economic damages: These emotional distress damages are considered non-economic damages, as they do not involve direct financial loss but address the emotional and psychological impact of the termination.

Attorney’s Fees

Pursuing a wrongful termination claim can be financially challenging, especially if the employee is already dealing with the financial strain of lost wages. However, if an employee’s claim is successful, they may be entitled to recover attorney’s fees and other legal costs.

• Legal costs covered: Employees who win their wrongful termination cases may have their attorney’s fees and related legal expenses paid by the employer. This can include court costs, filing fees, and other expenses incurred during the legal process.
• Encouraging legal action: The ability to recover attorney’s fees encourages employees to pursue legitimate wrongful termination claims without the fear of incurring significant out-of-pocket legal expenses.

Contact Marko Law Today

Understanding your rights as an employee is crucial, especially if you suspect you’ve been wrongfully terminated. Knowing when your termination violates employment laws and taking the appropriate steps to gather evidence, file complaints, and seek legal representation can make a significant difference in your case. Wrongful termination not only affects your livelihood but can also have emotional and professional consequences. By recognizing the signs of wrongful termination and acting quickly, you can protect yourself and pursue justice.

If you believe you have been wrongfully terminated, it’s essential to understand your legal rights. At Marko Law, our experienced attorneys are here to help you navigate wrongful termination claims and pursue the compensation you deserve. Contact us today for a free consultation.

Call 1-833-MARKO-LAW or 1-313-777-7777 to schedule your consultation.
Visit us at our main office: 220 W. Congress, 4th Floor, Detroit, MI 48226.
https://www.markolaw.com/