Michigan At-Will Employment

Michigan is an at-will employment state and as a result, absent a contract stating otherwise, a Michigan employee cannot only be terminated for cause. Therefore, there is no layer of assumed security once an employee learns that their employer can terminate them for any reason at any time. The clear exception to that is when an employer fires someone because they are a member of a protected class or in retaliation. For example, if an employee reports to HR that their boss has been acting in an inappropriate manner (e.g. harassment). The boss cannot then terminate the employee solely for making the report and assert an at-will employment arrangement as a valid defense/reason.

Basics of an Employment Contract

Like most contracts, an employment contract outlines the relationship and obligations of two parties. For these contracts, we are looking at the employer and the employee. Although only the employee may stand to gain from one, that isn’t the case. Employers may choose to offer employment agreements to attract talent. Additionally, they can outline clear expectations regarding workplace behavior, and they may add restrictive covenants. For instance, the contract may prevent the employee from taking a client list to a competitor or mishandling intellectual property.