It’s a question I often hear from employees: “If I was wrongfully terminated, how much can I recover in damages?” While the idea of a “big payday” after losing a job to discrimination or retaliation might seem appealing to employees, the reality—especially under Michigan law—is often far more nuanced. If you operate a business in Michigan, chances are you’ve worried about the potential risks and costs of defending a wrongful termination or discrimination lawsuit. The fear of a runaway jury verdict or “jackpot justice” can keep business owners up at night.
But there’s good news for Michigan employers: even when a jury finds in favor of an employee, the law provides powerful defenses that can significantly limit—or sometimes eliminate—potential damages. A June 26, 2025 federal case in the Eastern District of Michigan, Schankin v. Commercial Steel Treating Corp., perfectly illustrates how employers can use these defenses to their advantage.
The Schankin Case: Discrimination Found, But No Windfall
In this case, Greg Schankin sued his former employer, Commercial Steel, claiming he was fired due to age discrimination. The case went to trial, and the jury sided with Schankin—they found that his termination did violate Michigan’s Elliott-Larsen Civil Rights Act (ELCRA).
Here’s the twist: Despite this finding, the jury awarded Schankin just $1 in back pay, $1 in front pay, and $1 in non-economic damages. That’s right—only $3 in total.
How Did This Happen? The Importance of Mitigation and Comparable Employment
This result was not an accident. Under Michigan law, employees have a duty to mitigate their damages. That means, if an employee loses their job, they must actively seek comparable new employment. Any wages they earn (or could have earned) after termination are deducted from the damages they can recover.
Here, the facts were key:
Schankin was earning $102,000 a year as HR Manager before being let go.
After his termination, he promptly found another job, starting at $70,000 and later earning $75,000 per year.
Evidence at trial showed that, even if Schankin had not been terminated, the company had restructured and the only position available for him would have been an “HR generalist” role, paying anywhere from $35,000 up to $70,000 per year—a significant reduction from his original salary.
The jury could reasonably conclude that, since Schankin’s new job paid as much or more than the only role that would have been available at his former employer, he suffered no financial loss due to the termination. As a result, his damages were minimal.
Employer Takeaways: Defenses That Matter
If you’re an employer facing a wrongful termination or discrimination claim, remember:
Mitigation of Damages: You have the right to show that the employee could have, or did, find other work that pays as much (or nearly as much) as their previous position. If they do, their damages may be reduced or even wiped out.
Comparability of Available Positions: If your company underwent a restructuring or elimination of positions for legitimate business reasons, and the only available jobs paid less, that can limit the damages owed.
No Windfalls: Michigan law is clear that damages are based on actual economic loss—not just the salary an employee used to earn, but what they could have earned in available roles, and what they actually earn after leaving.
Strategic Defense in Employment Litigation
This case is an important reminder that even when discrimination is found, employers have strong defenses that can—and often do—minimize financial exposure. Document your restructuring decisions, maintain records of available positions and pay, and always be prepared to show what efforts (if any) the employee made to find comparable work after termination.
In the end, a verdict of “liability” does not automatically mean significant damages. With the right approach and legal counsel, employers can successfully defend these cases and protect their business.