On July 31, 2025, in Rayford v. American House Roseville I, LLC, the Michigan Supreme Court ruled that contractual time limitations for employment lawsuits must pass a reasonableness test. The case involved a nursing assistant who sued a nursing care facility three years after the claims accrued, although her employment contract required such claims to be brought within 180 days.

Quick Hits

• The Michigan Supreme Court recently ruled that contracts restricting how much time employees have to sue their employer must be examined for reasonableness.
• In Rayford v. American House Roseville I, LLC, a nursing assistant alleged harassment, retaliation, and other legal violations almost three years after the claims accrued.
• Her employment contract included language mandating that any employment lawsuits be filed within 180 days.

American House Roseville I, a nursing care facility, hired the plaintiff, Timika Rayford, as a certified nursing assistant in February 2017, and she signed an employee handbook acknowledgement form. The form included a limitation period of 180 days for bringing any lawsuit arising out of employment. Rayford said that she reported to the company’s HR division and the state of Michigan inappropriate sexual conduct between upper management and other nursing assistants that she said she had witnessed.

On July 1, 2017, the employee finished her shift and realized that she had left her purse in a locked room. The next day, she allegedly discovered that her...

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