When a Michigan Business Should Not Fire an Employee
Let's face it. Firing employees is no fun. But, sometimes it must be done to move the company forward. That said, there are times when a business must be exercise even more caution than usual when considering whether to terminate an employee.
First of all, it's important to be aware of the laws that protect employees in certain special circumstances. Such laws prohibit discharge of employees because their wages have been garnished, because they must take time off for military service or federal jury service, because they exercise their rights under workers' compensation laws, because they file for bankruptcy, or because they refuse to take a polygraph examination.
It is also illegal to fire an employee because they refuse to break the law. Courts have awarded damages to employees who were discharged for refusing to engage in illegal activities. In one case, a salesman would not participate in an illegal price fixing scheme; in another an x-ray technician refused to perform an illegal catheterization; in yet another an accountant refused to improperly record bookkeeping transactions.
The courts have also awarded damages to employees who were fired for reporting violations to government agencies. Under so called "whistleblowing" laws, companies have been required to pay damages to ex employees who reported to the authorities the criminal activities of a co worker, reported a workplace safety violation, or filed a complaint concerning an overtime wage law violation. In a very recent Michigan case, former Detroit police offers won a highly publicized trial against the City of Detroit and Mayor Kwame Kilpatrick after being terminated for investigating suspected wrongful conduct by certain people in the Mayor's administration. After the verdict against them, the City of Detroit and Mayor settled the case for over $8 Million.
The bottom line is that you don't want your business being investigated or sued because you fired someone for a legally improper reason. Not only is it the wrong way to do business, it can wind up costing you big time. Just ask Mayor Kilpatrick.
