Michigan Business Lawyer Blog

There are a number of steps a company can take to make sure it doesn't inadvertently convert its employees from "At-Will" employees to "just cause" employees. For example, some companies add "employment at will" wording to their job applications and employee handbooks to avoid claims of unfair firings. (Actually, all companies should add this language to their applications and handbooks.) Employees agree at the beginning of their employment that they are employed "at will" and may be terminated with or without cause.

The thing to remember is that while such wording may help protect against claims of unfair firings, but it is no defense to a discriminatory firing claim or for terminating an employee for legally protected conduct. A company can distribute handbooks with "employment at will" wording to all employees and ask them to sign an acknowledgment that they have received and understood the handbook.

Employment contracts and letters offering employment must be carefully worded to preserve your company's right to fire. For example, your employment contracts and letters, like your applications and handbooks, can state that employment is "At-Will" and that either the employee or the company may terminate the employment at any time, for any reason. A trusted lawyer should be engaged to help draft a form contract or offer letter for hiring new employees.

Many companies require that supervisors warn employees for substandard performance or improper conduct and to keep documentation of the warnings on file. Before firing, the company can try other forms of discipline such as suspensions or demotions. However, you should keep in mind that these kinds of warning and discipline procedures can undermine your company's ability to quickly and cleanly terminate employees. In extreme situations, these types of procedures effectively convert a private non-union company into a workplace that is governed by union-like warning and discipline procedures.

A qualified lawyer should be engaged to help prepare policies and procedures that will keep your company out of court.

Posted by Michael J. Hamblin | Permalink | Email This Post

Posted In: Employee Handbooks , Employment Law

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In Michigan, employees are by default employed on an "At-Will" basis. "At-Will" employees can be terminated for a good reason, bad reason, or no reason at all. In other words, you don't need a "just cause" to terminate an "At-Will" employee. However, it is surprisingly easy to have an employee's "At-Will" status changed into a "just cause" employment status.

Michigan courts have ruled that if an employer does something to create an expectation on an employee's part that they will be fired only if there is "just cause" for doing so, the employer's actions can convert that employee's status from "At-Will" to "just cause". This is true even if the employer did not intend to convert the employee's status. The conversion can happen inadvertently. For example, if a company's manager is pleased with an employee's performance and says something like "Keep up work like that and you'll always have a job here," that manager may very well have changed that employee's employment status to "just cause."

Managers and supervisors can be trained to protect the company's rights. They can be warned against making statements guaranteeing lifetime employment, promising promotions, or giving "inflated" employee evaluations. Careless statements made by managers and supervisors during hiring interviews and performance evaluations can be used against the company when a discharged employee claims that termination was unfair and illegal.

Guarding the "At-Will" employment status of a company's employees is one of the most important things management can do to protect a business against unwarranted, costly, and time-consuming employment litigation. But, "At-Will" employment status can be "easy come, easy go." Businesses must be vigilent that their practices and procedures are not undermining this important protection.

Posted by Michael J. Hamblin | Permalink | Email This Post

Posted In: Employee Handbooks , Employment Law

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In Michigan, a business is not required to have an employee handbook. But, I always advise my clients that it is a good idea to have one. Employee handbooks inform business owners and managers about the laws governing their day-to-day activities and help companies comply with state and federal regulations. They usually summarize the law and contain compliance checklists. Compliance failures can result in bad publicity, distracting lawsuits, and costly fines.

A typical Michigan employee handbook is about 20-40 pages long and provides practical guidance to company employees on how to comply with company policies. A good employee handbook also will help a company's managers comply with the law as it relates to the company's relationship with its employees.

A properly prepared employee handbook should be used by a company's employees and managers as a reference guide, to be kept handy on desktops and credenzas.

An employee handbook is a very important document -- and should be prepared only with close consultation and direction from a Michigan lawyer with expertise in employee handbooks. Although Michigan companies are not required to have an employee handbook, once a business places one in service, there are certain legal requirements that must be met.

Although there are publishers that purport to sell generic sample employee handbooks that a business can then supposedly customize on their own, using such a handbook could result in disaster. These generic handbooks almost never include state-specific provisions that must be contained in a Michigan business's employee handbook.

My practice includes preparing employee handbooks for Michigan companies. If you would like more information, feel free to call me at 248-952-0400 or visit my website -- http://www.hamblinlaw.com -- for more information.

Posted by Michael J. Hamblin | Permalink | Email This Post

Posted In: Employee Handbooks , Employment Law

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