Employment Practices Liability Insurance in Michigan

Michigan at a glance

Governing statute

Elliott-Larsen Civil Rights Act

Broader protected-class list than federal law, including height and weight.

Employer threshold

1 or more employees

Far lower than the federal Title VII 15-employee threshold.

Enforcement agency

Michigan Department of Civil Rights

Employees may also skip the agency and file directly in state court.

Protected categories

Includes sexual orientation & gender identity

Confirmed by Michigan Supreme Court interpretation of Elliott-Larsen.

Elliott-Larsen's broad reach compared to federal law

The Elliott-Larsen Civil Rights Act prohibits discrimination based on religion, race, color, national origin, age, sex, height, weight, familial status, and disability, and it generally applies to employers with just one or more employees — far broader than the 15-employee threshold under federal Title VII. This means small Michigan businesses that would fall entirely outside federal discrimination law are still subject to state-level exposure, which is an important distinction for very small employers evaluating their EPLI needs.

Michigan courts have interpreted Elliott-Larsen to include sexual orientation and gender identity as protected characteristics, following a state supreme court ruling, giving Michigan employees broader statutory protection than some neighboring states.

How a charge proceeds through the Michigan Department of Civil Rights

Employees can file a charge with the Michigan Department of Civil Rights, which investigates and can pursue conciliation or a formal hearing before the Michigan Civil Rights Commission, or an employee may choose to file directly in state court without first going through the agency, since Elliott-Larsen doesn't require administrative exhaustion the way some other states do. This dual-path structure means Michigan employers can face either an administrative investigation or a lawsuit with comparatively little advance notice, making early legal counsel and thorough documentation particularly valuable once a complaint surfaces.

Michigan-specific exposure notes

Because Elliott-Larsen applies to employers of almost any size, very small Michigan businesses face state-level discrimination exposure that similarly sized employers in many other states would not, making EPLI relevant even for micro-employers. Michigan's manufacturing and automotive-supply economy also generates recurring wage-and-hour and workplace-injury-adjacent retaliation claims, and the state's paid medical leave act requires covered employers to provide earned sick time, creating a distinct source of retaliation claims when employees use protected leave.

What EPLI covers and building a defensible record

EPLI for Michigan businesses typically covers defense costs and settlements or judgments tied to Elliott-Larsen discrimination and harassment claims, retaliation claims connected to paid sick leave use, and wrongful termination allegations, whether the claim starts at the Michigan Department of Civil Rights or directly in court. Given that even very small employers are covered by state law, documenting hiring decisions, performance issues, and terminations is valuable regardless of company size. Clear written policies addressing harassment, leave requests, and non-discrimination — communicated to all employees, not just supervisors — help support an employer's position if a claim is filed.

Who we write this for in Michigan

Employment practices liability FAQs for Michigan