Michigan Supreme Court rules on anti-retaliation laws

In Michigan, various state labor laws prohibit employers from retaliating against employees. But can an employee sue for public policy retaliation against their employer in addition to a claim for retaliation under the statute?

On July 22, 2024, the Michigan Supreme Court ruled that the anti-retaliation provisions in two important workplace safety statutes—the federal Occupational Safety and Health Act (“OSHA”) and the Michigan Occupational Safety and Health Act (“MIOSHA”)—do not bar plaintiffs from simultaneously pursuing public policy claims in court. Stegall v. Resource Technology Corp (Case No. 165450, decided July 22, 2024).

Cleveland Stegall, an IT specialist working for FCA through Resource Technology, an employment agency, filed an internal complaint about asbestos insulation problems at an assembly plant and threatened to file a government complaint. He was subsequently fired. Stegall sued both entities for wrongful termination under OSHA and MIOSHA anti-retaliation regulations, as well as for termination in violation of public policy.

Employees can be fired for any reason (or no reason at all). However, one exception to this rule is that some firings violate public policy and therefore are grounds for legal action. This includes firings for “failure or refusal to break the law” or exercising a right granted by the Michigan Legislature.

Both the trial court and the Court of Appeals dismissed Stegall’s public policy claim because they concluded that OSHA and MIOSHA regulations already prohibited retaliation. The Michigan Supreme Court reversed. It reasoned that the remedies under OSHA and MIOSHA regulations were insufficient, pointing to the abbreviated 30-day period for filing a complaint with the appropriate government agency, the discretion given to the appropriate investigative agency, and the employee’s lack of control over what happens after a complaint is filed. See 29 USC § 660(c)(2) and MCL 408.1065(2).

What does this case mean for employers? The Michigan Supreme Court’s decision opens up another avenue for employees to pursue retaliation claims, particularly when an employee raises safety concerns in the workplace. It’s unclear, however, whether the courts will expand on that ruling and allow employees to pursue wrongful termination claims as a matter of public policy if the employee also seeks relief under another anti-retaliation statute.