Michigan employment discrimination law centers on the Elliott-Larsen Civil Rights Act, which prohibits workplace discrimination based on religion, race, color, national origin, age, sex, sexual orientation, gender identity or expression, height, weight, familial status, and marital status. It applies to virtually every employer in the state, gives workers two routes to pursue a claim, and allows uncapped compensatory damages in state court.
Who the Law Protects
The ELCRA’s list of protected classes is broader than federal anti-discrimination law. Alongside the familiar categories, Michigan protects height, weight, familial status, and marital status.1Michigan Legislature. Michigan Code Act 453 of 1976 – Elliott-Larsen Civil Rights Act An employer cannot refuse to hire you or treat you differently because of your physical stature unless the job genuinely requires a specific build. Familial status protection means you cannot be penalized for having children or other dependents, and marital status protection prevents decisions based on whether you are single, married, or divorced.
Sexual orientation and gender identity or expression became explicit protected classes when the legislature amended the ELCRA in 2023, with the change taking effect February 13, 2024.2Michigan Legislature. ELCRA Expansion Senate Fiscal Agency Analysis The statute defines sexual orientation as orientation for heterosexuality, homosexuality, or bisexuality, and gender identity or expression as a gender-related self-identity or expression whether or not it matches the sex assigned at birth.
Which Employers Have to Follow It
The ELCRA defines “employer” as any person with one or more employees, including that person’s agents.3Michigan Legislature. Michigan Compiled Laws 37.2101 – Elliott-Larsen Civil Rights Act That threshold is dramatically lower than Title VII, which only reaches employers with 15 or more employees. In Michigan, a two-person shop is covered.
One narrow exemption: the law does not apply when you are employed by your own parent, spouse, or child.4Michigan Legislature. Michigan Compiled Laws 37-2202 – Employers, Prohibited Practices
What Employers Are Prohibited From Doing
The ELCRA bars any employment decision based on a protected characteristic. That includes refusing to hire, firing, and treating you differently in pay, benefits, or any other condition of employment.4Michigan Legislature. Michigan Compiled Laws 37-2202 – Employers, Prohibited Practices It also prohibits classifying or segregating employees in ways that limit their opportunities based on a protected class.
Pregnancy gets explicit protection. An employer cannot treat a worker affected by pregnancy, childbirth, termination of a pregnancy, or a related medical condition differently from another employee who has a similar ability or inability to work.4Michigan Legislature. Michigan Compiled Laws 37-2202 – Employers, Prohibited Practices
Retaliation Is Its Own Violation
Section 701 makes it illegal to retaliate against someone who opposes a violation, files a complaint, testifies, or participates in an investigation or hearing.3Michigan Legislature. Michigan Compiled Laws 37.2101 – Elliott-Larsen Civil Rights Act The law also prohibits aiding or encouraging a violation, coercing someone into violating the act, or interfering with your exercise of rights under it. Even if the underlying discrimination complaint turns out to be unfounded, punishing you for raising it is a separate violation.
How to File a Complaint
You have two paths, and you don’t have to pick between them in a vacuum. You can file an administrative complaint with the Michigan Department of Civil Rights, go directly to court, or do both. The deadlines, though, are strict.
MDCR: 180 Days
A complaint to the MDCR must be filed within 180 days of the alleged discriminatory act. You can file online or by calling 1-800-482-3604. Once the MDCR receives a signed complaint, it sends a copy to the employer and begins an impartial investigation. Both sides can present evidence, and the agency may conduct site visits, interview witnesses, and review documents. It may also schedule a conference to explore a resolution.5Michigan Department of Civil Rights. Complaint Investigation The MDCR does not advocate for either side. If the parties settle at any stage, the case closes; otherwise the MDCR completes its investigation and issues findings.6Michigan Department of Civil Rights. Enforcement and Investigation
Court: Three Years
You can file a civil lawsuit in Michigan court within three years of the discriminatory act. You are not required to go through the MDCR first.7Michigan Legislature. Michigan Compiled Laws 37-2801 – Civil Action
EEOC: 300 Days for Federal Claims
If your claim also falls under federal law, such as Title VII, the Age Discrimination in Employment Act, or the ADA, you can file a charge with the EEOC. Because Michigan has its own enforcement agency, the standard 180-day EEOC filing window extends to 300 calendar days.8U.S. Equal Employment Opportunity Commission. How to File a Charge of Employment Discrimination The MDCR and EEOC have a worksharing agreement, so filing with one agency usually counts as filing with the other. Once the EEOC finishes investigating or issues a right-to-sue letter (available after 180 days), you have 90 days to file a federal lawsuit.
What You Can Recover
ELCRA remedies are designed to make you whole, not to punish the employer. The act does not authorize punitive damages, and that is one of the real differences between state and federal discrimination law in Michigan.
A court or the Michigan Civil Rights Commission can order:
- Injunctive relief, including reinstatement, policy changes, and orders to stop the discriminatory practice
- Compensatory damages, including back pay, front pay for future lost earnings, and damages for emotional distress
- Reasonable attorney fees and costs for the prevailing party
For public accommodations violations, the commission can order civil fines reaching $10,000 for a first violation, $25,000 for a second within five years, and $50,000 for two or more within seven years. If the employer holds a state-issued license and the violation was authorized or knowingly permitted by its board or an executive, the commission can certify that finding to the licensing agency, putting the license at risk.9Michigan Legislature. Michigan Compiled Laws 37-2605 – Findings of Fact and Conclusions of Law The same certification applies to employers performing under state or local government contracts.
Federal Caps, for Comparison
When a claim proceeds under federal law instead, combined compensatory and punitive damages are capped by employer size:10U.S. Equal Employment Opportunity Commission. Remedies for Employment Discrimination
- 15 to 100 employees: $50,000
- 101 to 200 employees: $100,000
- 201 to 500 employees: $200,000
- More than 500 employees: $300,000
Those caps do not apply to ELCRA claims in state court, which have no statutory ceiling on compensatory damages. For larger employers facing significant exposure, that difference often drives the choice of forum.
Defenses an Employer Can Raise
Not every adverse decision tied to a protected characteristic is unlawful. The ELCRA recognizes several defenses.
An employer can make decisions based on religion, national origin, sex, age, height, weight, or marital status when the characteristic is a bona fide occupational qualification reasonably necessary to the normal operation of the business.11Michigan Legislature. Elliott-Larsen Civil Rights Act Excerpt – Section 208 “Reasonably necessary” is the operative phrase, not merely preferred. A religious organization requiring employees to share its faith is the classic example. Race and color are not on the BFOQ list; there is no circumstance under the ELCRA where either can be treated as a job qualification.
Decisions made under a bona fide seniority or merit system are permitted when the system was established and applied without discriminatory intent, follows pre-established criteria, and is used consistently. Bona fide retirement policies or systems are also allowed, so long as they are not a subterfuge to evade the act’s protections.4Michigan Legislature. Michigan Compiled Laws 37-2202 – Employers, Prohibited Practices A legitimate pension plan applied uniformly is fine; a “retirement policy” designed to push out older workers is not.
Taxes on a Settlement or Award
If you recover money, the federal tax treatment matters. Under IRC Section 104(a)(2), damages received on account of physical injury or physical sickness are excluded from gross income. Emotional distress damages that do not stem from a physical injury are taxable as ordinary income. Since most employment discrimination claims involve emotional distress rather than physical harm, the majority of settlements and awards are fully taxable. Punitive damages, where available under federal claims, are always taxable regardless of the underlying injury.