Employment Law in Michigan

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Pre-employment/Promotion

Hiring

Under federal law, an employer doesn't have to hire, or promote the most qualified applicant. But the employer cannot base decisions on personal characteristics that are not job-related. These characteristics often include:

• Age
• Race
• Sex
• Religion
• National origin
• Disability

An interviewer isn't allowed to ask questions relating to these characteristics. Interview questions that aren't allowed include:

• Are you married? Are you planning to get married?
• Do you have children? Are you planning to have children?
• Where were you born?
• What's your sexual orientation?
• Have you ever been arrested?

An interviewer can, however, ask about a personal characteristic if it could hinder your ability to fulfill the job's requirements. Some examples might be:

• Have you ever been convicted of a crime?
• Can you prove that you are eligible to work in the US?
• Can you do this job with or without reasonable accommodations?

References

A previous employer is free to provide any non-confidential information about a previous employee, so long as it's true and isn't provided to maliciously harm the employee. An employer who provides false information that disparages the employee may be liable for defamation. In order to avoid potential liability, many employers often refuse to comment on a past employee's job performance and confirm only dates of hire and separation, plus wage or salary information.

Employment

At Will

In Michigan, employees are presumed to be "at will." At-will employees may be terminated for any reason, so long as it's not illegal. Generally, employees who work under an employment contract can only be terminated for reasons specified in the contract. In Michigan, in order to overcome the at-will presumption, an employee must show that the employer made clear and unequivocal statements of job security to the employee.

Employee Handbooks

While an employer is not required by law to have an employee handbook, in most cases, it is recommended. An employee handbook provides a centralized, complete and certain record of the employer's policies and procedures. An employee handbook also provides more convenient access by employees and managers.

At a minimum, an employee handbook should include:

• A statement regarding the at-will employment relationship
• An equal employment opportunity statement
• A policy regarding sexual and other types of harassment in the workplace
• Internet access, e-mail, and voice mail policies
• The Family Medical Leave Act

In Michigan, employers can inadvertently create enforceable contracts in employee handbooks. An employment at will relationship may sometimes be rebutted by statements contained in an employee handbook.

The laws regarding an employer's duties and responsibilities arising under an employee handbook are complex, and a licensed attorney should be contacted to review individual circumstances.

Workplace Safety

Federal and state laws require that most employers furnish a place of employment that is free from recognized hazards that are causing or are likely to cause death or serious physical harm to employees. In most instances, an employee may anonymously complain to a state or federal agency about an unsafe work environment and be protected against employer reprisals.

In addition to federal and state laws, the Michigan Occupational Safety and Health Act of 1974 provides for the regulation of dangerous working conditions. The Michigan Occupational Safety and Health Administration (MIOSHA) works to assure the safety and health of Michigan workers.

Workplace Injury

Worker's compensation laws are designed to compensate employees who have been injured or killed in work related accidents according to a fixed monetary scheme, without having to resort to litigation. Dependents of a fatally injured employee may also be entitled to benefits. Employers may be protected by limits placed on the amount of an employee's recovery.

The amount of compensation paid to an employee depends upon the classification of his or her disability:

Total incapacity: generally 80% of the employee's average weekly wage

Partial incapacity: 80% of the difference between the employee's pre-injury after-tax average weekly wage and the post-injury after-tax average weekly wage

Michigan's workers' compensation system is premised on a trade-off between employees and employers. Employees promptly receive workers' compensation benefits for on-the-job injuries, and the limited workers' compensation benefits are the exclusive remedy against the employer, even when the employer was negligent.

In Michigan, the Department of Labor and Growth, Worker's Compensation Agency, administers an insurance system that provides benefits to employees who have suffered a work-related injury or illness and protects employers from compensation and the costs associated with litigation over work-related injury claims.

Sexual Harassment

An employer may be liable to an employee for instances of "sexual harassment" which can include unwelcome sexual advances, conduct or other physical or verbal acts of a sexual nature, which occur in the workplace. The following conduct is generally considered sexual harassment:

• Direct sexual conduct--an employer makes sexual advances or statements
• "Quid pro quo" - job-related benefits are offered in exchange for sexual conduct
• Hostile work environment--an employer maintains an overly sexual work environment

In Michigan, the Department of Civil Rights attempts to prevent discrimination and harassment through educational programs and the investigation of discrimination complaints. Complaints may be filed with the Department if the alleged discrimination has occurred within the past 180 days.

Because the laws determining what conduct, or pattern of conduct, constitutes actionable sexual harassment are complex, a licensed attorney should be contacted to review individual circumstances.

Discrimination and Wrongful Termination

Employers are not allowed to terminate or discriminate against employees for the following reasons:

• Age
• Race
• Sex
• Religion
• National origin
• Disability
• Pregnancy

It's illegal for an employer to consider these characteristics with regard to:

• Promotions
• Job assignments
• Termination
• Wages

And it's illegal for an employer to terminate an employee:

• For refusing to break a law
• In retaliation for filing a discrimination or safety claim
• For taking leave under the Family and Medical Leave Act
• Without following its own stated procedure or policy
• For reasons not contained in the employment contract, if one exists

Family and Medical Leave

Under federal law, eligible employees are allowed to take up to 12 weeks of unpaid medical leave, with continued medical benefits and restoration of their original position upon return. An employee is eligible under FMLA when they:

• Have worked for the same employer for the previous 12 months
• Have worked at least 1250 hours in the previous 12 months
• Are employed by a "covered" employer, which is:
  • All federal, state, and local governments and agencies
  • Private employers with 50 or more employees for 20 weeks in the calendar year and engaged in interstate commerce

Post-employment

Unemployment Benefits

Unemployment benefits are based on combinations of federal and state statutes. Michigan's unemployment insurance program is administered by the Michigan Unemployment Insurance Agency. It provides monetary compensation to workers who have been terminated without cause, through no fault of their own, and is intended to provide temporary income while the employee seeks new employment. Employees who voluntarily terminate their employment for "good cause" may also be entitled to benefits.

COBRA

Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), which is a federal law, employees may be allowed to continue their health insurance benefits, at the employee's expense, for up to 18 months after either voluntary or involuntary termination, if the employer has 20 or more employees.

To qualify for COBRA continuation coverage, an employee must have a qualifying event that causes the employee to lose group health coverage. The following are qualifying events:

For employees
• Voluntary or involuntary termination of employment for reasons other than gross misconduct
• Reduction in numbers of hours worked
For spouses
• Loss of coverage by the employee because of one of the qualifying events listed above
• Covered employee becomes eligible for Medicare
• Divorce or legal separation of the covered employee
• Death of the covered employee
For dependent children
• Loss of coverage because of any of the qualifying events listed for spouses
• Loss of status as a dependent child under the plan rules

Related Web Links:

- Michigan Department of Labor & Economic Growth
- Michigan Unemployment Insurance Agency
- Michigan Workers' Compensation Agency
- Employment Law for Employees message boards for more help