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Michigan Litigation Law | Understand Types of Employment Relationships

Understand The Seven Point Test Related to the Types of Michigan Employer-Employee Relationships From Just Cause to At Will

Just Cause vs. At Will

  • The concept of just cause was born out of the arbitral treatment of misconduct in the labor-management field. In the nonunionized sector of the workforce, the traditional arbitral just-cause approach, also known as the seven-point test, is widely used to review misconduct terminations in just-cause settings.
  • In at-will employment settings, using this seven-point just-cause approach can also ensure that employees are treated fairly, thereby minimizing the threat of litigation and making litigation more defensible if it occurs.

Seven-Point Just Cause Apporach

  • A no answer to one or more of the questions means that just cause either was not satisfied or at least seriously weakened in that some arbitrary, capricious, or discriminatory element was present:

  1. Notice: Did the employer give to the employee forewarning or foreknowledge of the possible or probable consequences of the employee’s disciplinary conduct?

  2. Reasonable rule or order: Was the employer’s rule or managerial order reasonably related to: (a) the orderly, efficient, and safe operation of the employer’s business and (b) the performance that the employer might properly expect of the employee?

  3. Investigation: Did the employer, before administering the discipline to an employee, make an effort to discover whether the employee did in fact violate or disobey a rule or order of management?

  4. Fair investigation: Was the employer’s investigation conducted fairly and objectively?

  5. Proof: At the investigation, did the “judge” obtain substantial evidence or proof that the employee was guilty as charged?

  6. Equal treatment: Has the employer applied its rules, orders, and penalties even-handedly and without discrimination to all employees?

  7. Penalty: Was the degree of discipline administered by the employer in a particular case reasonably related to (a) the seriousness of the employee’s proven offense and (b) the record of the employee in his service with the employer?