The Sixth Circuit recently issued a ruling in a case holding that employers cannot limit the amount of time their employees have to file claims under Title VII with employment contracts.

The case is Logan v. MGM Grand Detroit Casino, 939 F.3d 824 (6th Cir. 2019). Prior to starting her job as a cook for MGM Grand Detroit Casino, the Plaintiff contractually agreed to file any lawsuits against her employer within six months of an alleged incident. After working for MGM for several years, the Plaintiff resigned on Dec.4, 2014, citing discrimination. The Plaintiff then filed an EEOC charge of discrimination under Title VII on July 8, 2015 – a little over seven months after her resignation. The EEOC issued a right to sue notice on November 2016, and the Plaintiff sued MGM for discrimination in federal court under Title VII on February 17, 2016 – a full 14-months after resigning.

MGM moved for summary judgment, arguing that while her claim was not barred by the federal statute of limitations, the Plaintiff’s employment contract required her to bring the action within six months and her failure to do so barred her claim.  The district court agreed, granting summary judgment in favor of the employer. In a decision issued in September, the Sixth Circuit reversed the lower court’s ruling, concluding that contractual clauses that attempt to shorten the amount of time an employee has to file a lawsuit under Title VII are not enforceable. The court reasoned that employment agreements that seek to abrogate an employee’s rights to bring an action under Title VII “would be prospectively detrimental to [the employee’s] substantive rights under federal law and would frustrate the uniform application of Title VII.”

While the ruling in this case serves to limit employers’ ability to contractually shorten the statutory limitations period for federal claims of discrimination brought under Title VII, it does not apply to discrimination claims brought under Ohio Chapter 4112. Ohio courts have not definitively stated whether employers may contractually limit the amount of time employees have to file a discrimination lawsuit.

The attorneys at Fishel Downey Albrecht & Riepenhoff, LLP routinely advise public and private employers on state and federal discrimination laws and help draft policies consistent with these laws.  If you have any questions about this case or any other matter, please contact us at info@fisheldowney.com or call 614.221.1216.