Wrongful Termination in Michigan: When Can You Sue?

Michigan employees who believe they were fired illegally have several possible legal theories, each with its own forum and filing deadline. This article explains the at-will rule that governs most employment in the state, the narrow situations in which a termination becomes actionable, and the agencies and courts that handle each type of claim. For a broader overview of state workplace rules, see Michigan labor laws for workers and employers.

At-will employment: the default rule in Michigan

Michigan follows the at-will employment doctrine. Under it, either the employer or the employee can end the relationship at any time, with or without cause and with or without notice. An employer generally does not need a good reason to fire someone, and an unfair or even mistaken firing is not, by itself, illegal.

The at-will rule is a starting point, not an absolute. State and federal statutes carve out categories of firings that are prohibited, and contracts can limit an employer’s freedom to terminate. A wrongful termination claim is an argument that one of those limits applies to a particular firing.

When a termination becomes wrongful

A termination is legally wrongful in Michigan when it falls into one of a few recognized categories:

• Discrimination based on a protected characteristic.
• Retaliation for exercising a legal right, such as whistleblowing or filing a workers’ compensation claim.
• Breach of contract, including an implied contract or a violation of a written or collective bargaining agreement.
• Public-policy violations, such as firing an employee for refusing to break the law or for exercising a statutory right.

Each category has its own elements and its own place to file. The sections below describe them.

Discrimination claims under the Elliott-Larsen Civil Rights Act

Michigan’s main anti-discrimination statute is the Elliott-Larsen Civil Rights Act. Under MCL 37.2202, an employer may not discharge or otherwise discriminate against an employee because of religion, race, color, national origin, age, sex, sexual orientation, gender identity or expression, height, weight, or marital status. The statute also protects individuals affected by pregnancy and childbirth. Amendments effective February 13, 2024 added sexual orientation and gender identity or expression to the list of protected characteristics.

Federal law overlaps here. Title VII of the Civil Rights Act, the Age Discrimination in Employment Act, and the Americans with Disabilities Act prohibit many of the same firings and are enforced by the U.S. Equal Employment Opportunity Commission. A worker alleging discrimination can file a charge with the EEOC, file with the Michigan Department of Civil Rights, or pursue a civil lawsuit under state law.

Retaliation and whistleblower firings

Firing an employee for reporting illegal conduct or for exercising a protected right is a distinct category of wrongful termination.

The Whistleblowers’ Protection Act protects employees who report, or are about to report, a suspected violation of law to a public body. Under MCL 15.363, a person alleging a violation may bring a civil action for injunctive relief or actual damages within 90 days after the violation. That 90-day window is one of the shortest deadlines in Michigan employment law.

Michigan’s workers’ compensation statute contains its own anti-retaliation rule. MCL 418.301(13) prohibits an employer from discharging or discriminating against an employee because the employee filed a workers’ compensation claim or asserted a right under the act.

Other retaliation protections come from federal law. Firing a worker for filing a wage complaint, taking family or medical leave, or reporting a safety hazard can violate federal statutes enforced by the U.S. Department of Labor.

Contract and public-policy exceptions

At-will employment can be modified by contract. A written employment agreement or a collective bargaining agreement may allow termination only “for cause.” Michigan courts also recognize an implied contract theory: employer policies, handbooks, or oral assurances of job security can, in some circumstances, create an enforceable expectation that an employee will be fired only for cause rather than at will.

Michigan recognizes a narrow public-policy exception as well. A firing can be actionable when it punishes an employee for doing something the law protects or requires, refusing to commit an illegal act, reporting a legal violation, or exercising a right the law confers, such as filing a workers’ compensation claim.

Deadlines and where a claim is filed

Where a wrongful termination claim goes depends on the legal theory, and each forum carries a filing deadline. Discrimination charges go to the EEOC or the Michigan Department of Civil Rights; whistleblower and contract claims are filed in circuit court.

1. Identify the legal theory

   Wrongful termination is not a single claim. Whether a firing involved discrimination, retaliation, a contract breach, or a public-policy violation controls which law applies and where the claim is filed. The theory also fixes the deadline.

2. Preserve documentation

   Employment records, performance reviews, handbooks, emails, and the stated reason for the firing are the evidence these claims turn on. Gathering them early matters, because the deadlines run quickly.

3. File with the right forum before the deadline

   Discrimination charges are filed with the EEOC within 300 days or with the Michigan Department of Civil Rights. Whistleblower claims are filed in circuit court within 90 days. Contract and public-policy claims are filed as civil lawsuits under longer limitation periods.

Large-scale layoffs are governed by a separate federal rule. The Worker Adjustment and Retraining Notification Act generally requires employers with 100 or more employees to give 60 days’ advance written notice of a plant closing or mass layoff. The WARN Act provides notice rights, not protection against the layoff itself, and it is enforced through the federal courts.