Michigan At-Will Employment Laws: Exceptions and Your Rights

Michigan is an at-will employment state, meaning an employer may terminate an employee for any reason or no reason at all, provided the reason is not illegal. The at-will rule is a default of Michigan common law, but the Michigan Supreme Court has recognized significant exceptions that substantially limit an employer's power to fire.

Is Michigan an at-will employment state?

Yes. Michigan follows the at-will employment doctrine as a matter of common law. Absent a contract, statute, or recognized exception to the contrary, either the employer or the employee may end the employment relationship at any time, with or without advance notice, and for any reason or no stated reason. This default rule is long established in Michigan courts and applies to the vast majority of private-sector employees in the state. Public employees often have additional contractual or statutory protections that modify this default, and union members are typically covered by a collective bargaining agreement that requires just cause for termination.

Exceptions to at-will employment in Michigan

Michigan recognizes two of the three major common-law exceptions to at-will employment. Understanding each one is critical to evaluating whether a termination was wrongful.

Public-policy exception (recognized). The Michigan Supreme Court held in Suchodolski v. Michigan Consolidated Gas Co., 412 Mich. 692 (1982), that an employer violates public policy by discharging an employee for: (1) refusing to commit an act that would violate the law; or (2) exercising a right conferred by a well-established legislative enactment, such as filing a workers' compensation claim. Reporting suspected violations of law to public authorities is separately protected by Michigan's Whistleblowers' Protection Act, MCL 15.361 et seq., and by common-law public-policy claims grounded in that statute, but the Suchodolski court enumerated only those two categories. The public-policy source must be clearly established and a court will not invent a policy from thin air; it must be grounded in a statute or constitutional provision.

Implied-contract exception (recognized, and unusually robust in Michigan). In the landmark decision Toussaint v. Blue Cross & Blue Shield of Michigan, 408 Mich. 579 (1980), the Michigan Supreme Court held that an employer's written personnel policies or oral statements promising job security can form an implied contract requiring just cause for termination, even without a formal signed agreement. This exception is broader than in many other states. However, the "Rood/Rowe line" of cases clarified that a clear and unambiguous disclaimer in a handbook or offer letter stating that employment is at-will and no promises of job security are made will prevent an implied contract from arising. If your employer's handbook contains such a disclaimer, Toussaint is unlikely to protect you.

Covenant of good faith and fair dealing (NOT recognized as a standalone tort). Michigan does not recognize a separate tort claim for breach of an implied covenant of good faith and fair dealing in the employment context. Employees who have implied-contract claims proceed under Toussaint, not under an independent good-faith duty.

Is Michigan a right-to-work state?

No. As of February 13, 2024, Michigan is no longer a right-to-work state. Governor Gretchen Whitmer signed 2023 PA 8 into law, repealing MCL 423.14, which had prohibited mandatory union membership or dues as a condition of employment. Michigan's repeal was the first time any state had reversed a right-to-work law in 58 years and reduced the national count from 27 right-to-work states to 26.

This is important to understand correctly: right-to-work law governs whether a collective bargaining agreement may require employees to join or financially support a union as a condition of continued employment. Now that the repeal is in effect, private-sector unions and employers in Michigan may once again negotiate union-security agreements. This means employees in a bargaining unit could be required to pay union dues or an equivalent fee as a condition of keeping their job.

Right-to-work status is entirely separate from at-will employment. Right-to-work concerns your relationship with your union. At-will employment concerns your employer's ability to terminate you. Employees covered by a union contract typically have just-cause protections that restrict at-will termination regardless of right-to-work status.

For the current list of right-to-work states, the Michigan Legislature's site at https://www.legislature.mi.gov/ provides the statutory text of 2023 PA 8.

What at-will employment does not allow in Michigan

At-will status does NOT give employers a license to fire for any reason they choose. A substantial body of federal and state law sets a floor below which no employer may go, regardless of the at-will rule.

Federal anti-discrimination laws prohibit discharge based on race, color, sex, national origin, or religion (Title VII of the Civil Rights Act of 1964); age 40 or older (Age Discrimination in Employment Act); disability (Americans with Disabilities Act); genetic information (Genetic Information Nondiscrimination Act); pregnancy, childbirth, or related conditions (Pregnancy Discrimination Act and Pregnant Workers Fairness Act); or pay differentials based on sex (Equal Pay Act).

Federal retaliation and leave protections prohibit firing an employee for taking qualifying leave (Family and Medical Leave Act), for reporting wage and hour violations (Fair Labor Standards Act), for exercising rights under the National Labor Relations Act (including concerted activity such as discussing wages with coworkers), for reporting workplace safety complaints (Occupational Safety and Health Act), or for military service (Uniformed Services Employment and Reemployment Rights Act).

Michigan's Elliott-Larsen Civil Rights Act (MCL 37.2101 et seq.) provides state-level protections against discrimination based on race, color, national origin, religion, sex, age, height, weight, familial status, marital status, and disability. The act is enforced by the Michigan Department of Civil Rights. Firing someone for any of these characteristics is unlawful even though Michigan is otherwise an at-will state.

Michigan's Persons with Disabilities Civil Rights Act (MCL 37.1101 et seq.) provides additional disability protections beyond the ADA. Whistleblowing protections are anchored in Michigan's Whistleblowers' Protection Act (MCL 15.361 et seq.), which protects employees who report or are about to report a violation of law to a public body. These layered protections mean that even in a robust at-will state, a very large number of terminations may be legally actionable.

If you were fired in Michigan

Being an at-will employee does not mean your termination was lawful; it means your employer was not required to give a reason. An illegal reason is still illegal even if no reason was stated aloud.

If you have been fired, the most important first step is to document everything you remember: the date, who told you, the stated or unstated reason (if any), and any events in the weeks or months beforehand such as a workers' compensation claim, a harassment complaint, a request for FMLA leave, a discussion about pay with coworkers, or a report to a regulator. Courts look at timing and circumstantial evidence when a protected activity occurred shortly before a termination.

Next, assess which exceptions or protections might apply. Did your employer have a handbook without a clear at-will disclaimer? Did a manager make oral promises of job security? Did you exercise a statutory right shortly before being fired? Does the termination appear related to a protected characteristic? Did you report suspected wrongdoing to a supervisor or public authority?

Deadlines for filing claims are short. Claims under Title VII and the ADA typically require filing a charge with the Equal Employment Opportunity Commission within 300 days of the termination. Claims under the Michigan Whistleblowers' Protection Act must be filed within 90 days. Missing these windows may permanently bar your claim. Consult a licensed employment attorney in Michigan as soon as possible after your termination.

This article is general legal information, not legal advice. Employment law varies by state and changes frequently, and it is not a substitute for advice about a specific termination. For guidance on your situation, consult a licensed employment attorney in Michigan.

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Sources

• Michigan Legislature: 2023 PA 8 (RTW repeal, MCL 423.14 history): https://www.legislature.mi.gov/
• Suchodolski v. Michigan Consolidated Gas Co., 412 Mich. 692 (1982) (public-policy exception)
• Toussaint v. Blue Cross & Blue Shield of Michigan, 408 Mich. 579 (1980) (implied-contract exception)
• Elliott-Larsen Civil Rights Act, MCL 37.2101 et seq.
• Michigan Persons with Disabilities Civil Rights Act, MCL 37.1101 et seq.
• Michigan Whistleblowers' Protection Act, MCL 15.361 et seq.
• Title VII of the Civil Rights Act of 1964, 42 U.S.C. 2000e et seq.
• Americans with Disabilities Act, 42 U.S.C. 12101 et seq.
• Age Discrimination in Employment Act, 29 U.S.C. 621 et seq.

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Related: At-Will Employment by State | Whistleblower Protections