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HB 4448

Labor: other; cause for termination of employment; require. Creates new act.

2025-2026 Regular Session Introduced by Joey Andrews and 30 co-sponsors

Prohibits wrongful discharge and requires just-cause, with DLEO investigations and damages remedies for violations by public or private employers.

bill electronically reproduced 05/06/2025
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Bill Summary · HB 4448

Summary: House Bill 4448 — Wrongful Discharge from Employment Act (Michigan, 2025)

Overview

HB 4448 proposes a new Michigan law, the "Wrongful Discharge from Employment Act," designed to prohibit wrongful terminations and to establish state-level enforcement, remedies, and procedures. The act targets both private and public employers and creates a framework for determining just cause, handling complaints, and awarding damages or penalties where violations occur. It defines key terms (including constructive discharge, just cause, and wrongful discharge) and sets out enforcement roles for the Department of Labor and Economic Opportunity (DLEO).

Key Provisions

Prohibited Conduct and Just Cause

  • An employer may not wrongfully discharge an employee.
  • Wrongful discharge includes:
    • Retaliation for an employee’s refusal to violate public policy or for reporting public-policy violations.
    • A discharge not for just cause after an employee completes the employer’s probationary period.
    • Violating the employer’s express written personnel policy.
  • Just cause for discharge is based on reasonable job-related grounds, considering:
    • Prior notice to the employee of the policy/rule allegedly violated.
    • Fair, objective pre-discharge investigation showing violation.
    • Substantial evidence of violation.
    • Fair, non-discriminatory application of workplace policies.
    • Relationship of the policy/rule to reasonable business efficiency and performance.
    • Discharge proportional to the seriousness of the violation and the employee’s disciplinary history.

Probationary Period

  • During a probationary period, an employee is at-will.
  • Maximum probationary period is 3 months.
  • No probationary period exists if:
    • The employer fails to establish it at or before hire, or
    • The employer fails to notify the employee of the probationary period.

Remedies and Damages

  • Time limits:
    • Damages action: within 2 years of the violation.
    • Department complaint: within 1 year of the violation.
  • Damages may include:
    • Lost wages and fringe benefits (excluding wages the employee could have earned elsewhere, net of relocation/search costs).
    • Punitive damages if clear and convincing evidence shows retaliation for public-policy refusal/violation reporting and fraudulent or malicious conduct.
  • Enforcement and remedies:
    • DLEO enforces the act, with a multi-channel complaint system and timely investigations.
    • The department may mediate and notify complainants of status.
    • If a violation is found, the department issues a notice of violation and relief requirements.
    • The department can impose penalties and distribute recovered wages to the employee; acts as trustee for the employee.
    • Willful violations may incur an administrative fine up to $500.

Who Is Affected

  • Employees (express or implied contracts; excludes independent contractors).
  • Employers with one or more employees.
  • Applies to both public and private sectors, subject to constitutional and contractual exceptions (e.g., inconsistent collective bargaining agreements).

Procedural and Timeline Aspects

  • Status: introduced May 6, 2025; referred to the Committee on Economic Competitiveness; prior actions include filing March 11, 2025 and first-reading steps in April 2025.
  • Enforcement pathway: employee may pursue civil damages or file a department complaint; DLEO investigates, mediates, and issues remedies.
  • Compliance posture: employers must adhere to just-cause standards and fair-discharge procedures or face penalties, damages, and potential wage restoration.

Potential Impact

  • Strengthens protections against wrongful discharge and expands avenues for redress.
  • Introduces formal investigation and mediation processes via the DLEO.
  • Encourages clearer, fairer discharge practices and documentation of policy enforcement.
  • Creates potential liability for at-will probationary terminations and for policy violations, with limited fining for willful misconduct.

Compiled from official sources — confirm details with the bill’s official record.

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