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Wrongful Termination of At-Will Employees

Many of us, especially those in at-will states, have heard the saying: at-will employees can be fired for any reason or no reason at all. But this isn’t necessarily true. Many laws still apply to at-will employers and if the termination violates one of these laws, the employee may have a wrongful termination claim. The two main laws that give rise to wrongful termination claims for at-will employees are the civil rights statutes and retaliation laws.

Termination of At-Will Employee in Violation of the Civil Rights Statutes

In Michigan, various federal and state laws prohibit an employer from terminating an employee regardless of at-will status for a discriminatory reason, which includes termination because of:

  • Race
  • Color
  • Sex
  • Refusing Sexual Harassment
  • Pregnancy
  • Sexual Orientation
  • Gender Identity
  • Religion
  • National origin
  • Disability
  • Exercising Your FMLA Rights
  • Weight
  • Height
  • Marital Status
  • Familial Status
  • Military Service

If an at-will employee is terminated for any of these reasons, the termination is illegal and the at-will employee may have a wrongful termination claim.

Additionally, it is illegal for an employer to terminate an at-will employee in retaliation for opposing or complaining of discrimination or harassment based on the classes listed above, i.e. discrimination based on race, color, etc.

Likewise, an employer may not terminate an at-will employee for supporting another’s complaint of discrimination or harassment, or for participating in an investigation of discrimination or harassment.

Termination of Whistleblowers

There are numerous federal and state whistleblower statutes that protect employees who report an employer’s violation of the law. Many of these statutes only protect whistleblowers in a specific context. For instance, the federal whistleblower act only pertains to federal employees. The Dodd-Frank Act whistleblower statute only protects employees who report violations of securities laws to the Securities Exchange Commission (SEC).

However, Michigan has its own, broad whistleblower statute that protects employees who report an employer’s violation of practically any law to a public body. There are, however, a few requirements the law imposes to be entitled to whistleblower protection under the Michigan statute.

First, only employees are entitled to whistleblower protection. Unfortunately, this means independent contractors are not protected.

The employee must also have reported the violation of a law to a public body, or have been about to report the violation to a public body. The legal definition of a public body is broad, and includes state and local government, the legislature, and law enforcement. Some common examples are state agencies and city councils.

In addition, the Michigan whistleblower statute also protects an employee who has participated in an investigation of a violation of the law by a public body. A common example of this is acting as a witness in the investigation.

If the employer has terminated an employee because the employee reported, or was about to report, a violation of the law to a public body, or because the employee participated in an investigation of such, the employee may have a wrongful termination claim under the Michigan whistleblower statute regardless of whether the employee was at-will.

Wrongful Termination of At-Will Employee in Violation of Public Policy

In addition to the civil rights and whistleblower statutes, the courts have fashioned a wrongful termination remedy for at-will employees whose termination violates established public policy. These claims are difficult and rarely successful, but include termination for refusing to violate the law, or for asserting a well-established right.

Conclusion

Being an at-will employee does not mean you do not have any rights, or that you do not have a claim for wrongful termination. The above is a description of the main ways an employer may violate the law in terminating an at-will employee, but there may be others. If you believe you have been wrongfully terminated, Fett Law will evaluate your case free of charge. Visit our homepage to learn more.