Advocacy News – Aug. 6, 2025
What’s new: The ruling from the Michigan Supreme Court (MSC) last week creates uncertainty for employers about the enforceability of contractually shortened limitation periods for employment agreements.
Why it matters: In Tamika Rayford v. American House Roseville, LLC d/b/a American House East I and American House, MSC held that boilerplate employment agreements that shorten the limitations period to bring civil rights claims must be examined for reasonableness.
- Our friends at the Miller Canfield law offices say this about the ruling: “Although the provisions in these agreements may be permitted when found to be reasonable, they are subject to traditional contract defenses. Additionally, employment agreements that are determined to be adhesion contracts — contracts where one party has significantly more bargaining power than the other, may be procedurally and substantively unconscionable. … Based on the Court’s decision, employers will need to review their employment contracts that contain shortened period of limitations clauses to ensure compliance with this ruling.”
Go deeper: Read Miller Canfield’s full alert.