What Are Michigan’s Employee Termination Laws?

Michigan employee termination laws start from the at-will rule: unless a contract says otherwise, your employer can fire you for a good reason, a bad reason, or no reason at all, and you can quit on the same terms. What at-will does not allow is a firing for a reason the law specifically forbids, and Michigan has a long list of those reasons along with rules that govern your final paycheck, unemployment eligibility, health coverage, and how long you have to challenge a termination you believe was illegal.

When At-Will Doesn’t Apply

Two things override the at-will default. The first is a contract, written or implied. In Toussaint v. Blue Cross & Blue Shield of Michigan, the Michigan Supreme Court held that written policy statements or oral promises of job security can create an enforceable agreement even without a formal term contract.1Justia. Toussaint v. Blue Cross 1980 Michigan Supreme Court Decisions If you were told at hiring that employees are only fired for cause, or the handbook lays out a specific termination process, those representations can bind the employer.2Justia. Rood v. General Dynamics Corp. 444 Mich 107 (1993)

The second override is a statute. An employer who fires someone for a reason that violates anti-discrimination law, whistleblower protections, or certain other statutes is liable regardless of at-will status.

Firings That Are Illegal in Michigan

Discrimination

The Elliott-Larsen Civil Rights Act (ELCRA) prohibits firing or otherwise discriminating against someone because of religion, race, color, national origin, age, sex, sexual orientation, gender identity or expression, height, weight, or marital status. Sexual orientation and gender identity were added by a 2023 amendment. ELCRA also protects employees affected by pregnancy, childbirth, or a related medical condition; a pregnant worker cannot be treated differently from other employees with a similar ability or inability to do the job.3Michigan Legislature. Michigan Compiled Laws 37-2202

The Persons with Disabilities Civil Rights Act separately prohibits employment discrimination based on a disability.4Michigan Legislature. Michigan Compiled Laws 37-1102 – Persons With Disabilities Civil Rights Act Federal laws add another layer for larger employers: Title VII, the ADA, and the Age Discrimination in Employment Act generally apply to employers with 15 or more employees, or 20 or more for age.

Whistleblower Retaliation

Michigan’s Whistleblowers’ Protection Act makes it illegal to fire, threaten, or penalize an employee for reporting a suspected violation of federal, state, or local law to a public body, or for participating in an investigation, hearing, or court proceeding at a public body’s request.5Michigan Legislature. The Whistleblowers Protection Act – Act 469 of 1980 Two things to know if you think this applies to you. The protection does not cover reports the employee knowingly filed as false. And the employee must prove by clear and convincing evidence that they reported or were about to report a suspected violation, which is a higher standard than the preponderance rule used in most civil cases.

The filing window is 90 days from the retaliation. That is one of the tightest deadlines in Michigan employment law.

What Isn’t Protected: Off-Duty Marijuana

Neither the Michigan Medical Marihuana Act nor the Michigan Regulation and Taxation of Marihuana Act protects employees from being fired for off-duty marijuana use. Federal courts have confirmed that the Medical Marihuana Act does not restrict a private employer’s ability to discipline workers for marijuana use, even when the use is state-authorized. Unemployment is a separate question, addressed below.

What You’re Owed When Employment Ends

Final Paycheck

Under Michigan’s Payment of Wages and Fringe Benefits Act, if you were fired the employer must pay all earned wages as soon as the amount can reasonably be calculated. If you quit, the employer must pay as soon as the amount can be determined.6Michigan Legislature. Michigan Compiled Laws 408-475 – Payment of Wages and Fringe Benefits The common assumption that employers can wait until the next regular payday is not what the statute says for most terminations.

Vacation, Sick Time, and Severance

Earned vacation counts as a fringe benefit when it’s provided through a written contract or company policy, and unused earned vacation must be paid out at the end of employment.7Michigan Legislature. Payment of Wages and Fringe Benefits Act 390 of 1978 Without a written policy, there may be no legal obligation to pay it out. If your employer refuses, you can file a complaint with the Michigan Wage and Hour Program.

Unused earned sick time under Michigan’s Earned Sick Time Act works differently. Employers are not required to pay it out when employment ends.8Michigan Legislature. Michigan Compiled Laws 408-963

Severance is not required by any Michigan law. Whether you get it depends on your contract, company policy, or collective bargaining agreement. When employers do offer severance, they often condition it on a waiver of future legal claims. These waivers are enforceable in Michigan as long as they’re signed knowingly and voluntarily. You do not have to sign on the spot, and if you are 40 or older, the federal Older Workers Benefit Protection Act typically gives you 21 days to consider the offer and 7 days to revoke it after signing. Read carefully before you sign, because signing usually forecloses the claims discussed in the rest of this article.

Advance Notice for Layoffs

Michigan does not require advance notice for an individual termination. For mass layoffs and plant closings, the federal Worker Adjustment and Retraining Notification (WARN) Act requires employers with 100 or more full-time workers to give at least 60 days’ written notice.9Office of the Law Revision Counsel. 29 USC Ch. 23 – Worker Adjustment and Retraining Notification Smaller employers are outside WARN entirely.

Unemployment Benefits After a Firing

Michigan offers up to 26 weeks of unemployment, with a maximum weekly benefit rate of $530 for claims filed in 2026.10Labor and Economic Opportunity. Unemployment Weekly Benefit Rate Increases Jan. 1, 2026 To qualify, you need wages in at least two quarters of your base period. For benefit years beginning in 2026, at least one quarter’s wages must be $5,328 or more, and your total base-period wages must equal at least 1.5 times your highest quarter.11State of Michigan. LEO – Eligibility Requirements

Being fired does not automatically disqualify you. The disqualifying category is discharge for “misconduct connected with work,” which Michigan law defines specifically to include things like theft, assault, willful property destruction, on-the-job intoxication, failing or refusing a drug test, and violating a law that results in jail time.12Michigan Legislature. Michigan Compiled Laws 421-29 – Michigan Employment Security Act Poor performance, personality conflicts, or a general “not a good fit” firing typically does not meet that standard. Quitting voluntarily will disqualify you unless you had good cause attributable to the employer, such as unsafe conditions or a significant change in your job terms.

A narrow exception exists for medical marijuana cardholders. After the Michigan Supreme Court declined to hear an appeal of a lower court ruling, the Unemployment Insurance Agency confirmed that a valid cardholder will not be disqualified from benefits solely for testing positive for marijuana. That protection is lost if you used marijuana at work, were under the influence on the job, or cannot produce a valid registry card.13Labor and Economic Opportunity. Notice to Employers and Claimants Concerning Medical Marijuana

Health Insurance After You Leave

If you had employer-sponsored coverage through an employer with 20 or more employees, federal COBRA lets you continue that group health plan at your own expense for up to 18 months. Your employer has 30 days after termination to notify the plan administrator, and you then have 60 days from receiving the election notice to enroll.14Centers for Medicare & Medicaid Services. COBRA Continuation Coverage Questions and Answers You pay the full premium your employer was subsidizing, plus an administrative fee of up to 2%.

Michigan has no “mini-COBRA” for smaller employers. If your former employer has fewer than 20 employees, federal COBRA does not apply and no state equivalent picks up the slack. The federal Health Insurance Marketplace or a spouse’s plan are the usual alternatives.

Getting Your Personnel File

The Bullard-Plawecki Employee Right to Know Act gives current and former employees the right to review their personnel file. After a written request, the employer must let you inspect the file at a location near the workplace during normal business hours, up to twice per calendar year.15Michigan Legislature. Bullard-Plawecki Employee Right to Know Act You can request copies after reviewing, and the employer may charge only the actual cost of duplication. If you cannot reasonably travel to the site, you can request in writing that a copy be mailed.

This right is worth exercising promptly if you’re considering a wrongful termination claim. Performance reviews, disciplinary records, and written warnings in that file are often central evidence. If you disagree with something in the file, you can submit a written statement of up to five pages, and the employer must include that statement whenever the disputed information is shared with a third party.15Michigan Legislature. Bullard-Plawecki Employee Right to Know Act

Deadlines for Challenging a Termination

The clock starts the day you’re fired, and different claims run on very different timers.

Where to File

The Michigan Department of Civil Rights investigates complaints under ELCRA and the Persons with Disabilities Civil Rights Act, and can lead to mediation or settlement without a full lawsuit.19State of Michigan. Michigan Department of Civil Rights The MDCR is a neutral investigator, not your advocate.

For claims under federal anti-discrimination laws, the Equal Employment Opportunity Commission handles charges. Most federal employment discrimination statutes require you to file with the EEOC before bringing a lawsuit in court.20U.S. Equal Employment Opportunity Commission. Filing a Charge of Discrimination For state-law claims, you can skip the agencies and file directly in Michigan circuit court.

What You Can Recover

A successful ELCRA claim can result in injunctive relief, compensatory damages for the harm caused by the discrimination, and reasonable attorney’s fees.21Michigan Legislature. Michigan Compiled Laws 37-2801 The Whistleblowers’ Protection Act allows recovery of actual damages, including lost wages, and attorney’s fees. Reinstatement is possible depending on the claim, though monetary awards are more common in practice because the working relationship is usually too damaged to restore.