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Use contractual limitations to protect company and managers

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in Compensation and Benefits,Employment Law,Human Resources,Leaders & Managers,Management Training

by Danon D. Goodrum, Esq., Clark Hill PLC, Detroit

Michigan courts have generally upheld as valid and enforceable provisions within an employment application or employment contract that place time limits on when employees can sue their employers.
    Thus, while the statute of limitations for filing a claim of discrimination under Michigan’s Elliott-Larsen Civil Rights Act (ELCRA) is three years, a Michigan court has upheld contractual provisions providing for a shortened limitations period of six months.
    Still, employees who have missed the deadlines spelled out in the contracts have repeatedly challenged the shortened deadlines, arguing that such limitations are unconstitutional, unreasonable or violate public policy. To date, Michigan courts have rejected their arguments and dismissed their cases.

Crafting agreements that work

Employers, however, must draft the agreements carefully. The obvious intent of a limi...(register to read more)

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