In Logan v. MGM Grand Detroit Casino, the employer’s job application included a signed statement requiring that the employee file any lawsuit against the employer within six months of the alleged harm. The plaintiff quit her job and subsequently filed a sex discrimination claim with the EEOC and a lawsuit following the completion of the EEOC investigation. The district court dismissed the suit on the basis that it was filed beyond the six-month limitations period agreed upon by the plaintiff.                                    

The Sixth Circuit had little difficulty reversing this decision. The court noted the specific limitations periods set by Congress in Title VII. The Sixth Circuit characterized these timelines as substantive rights. By requiring that a lawsuit be filed before the EEOC may complete its investigation of the charge, the contract materially interferes with the ability of the EEOC to thoroughly investigate and potentially resolve charges. The court also noted that allowing parties to attempt to shorten the limitations period for filing claims would result in a patchwork of state law rulings on the use of contracts for this purpose.

Courts generally do not favor agreements with employees that limit their rights to seek redress against their employers. Whether using statutory, common law, or public policy grounds, courts will usually prevent employers’ attempts to avoid claims through the use of contracts.