Metro Airport hired a new CEO in August of this year. After less than two months on the job, however, she was let go. According to reports, her firing may have been related to her controversial severance payment from a Wayne County government position.

The former CEO's employment contract stipulated that if she was wrongfully fired, she would receive more than $700,000 -- or the amount she would have made in three years -- in severance. Metro Airport's board said it had a reason for firing her but so far has not said what it was. Earlier this week, however, a labor activist filed a lawsuit saying the former CEO's contract was illegal, and she should not be given any severance pay.

The labor activist not only made these allegations, he also alleged that the airport went against the Open Meetings Act when it hired the woman to be its new CEO over the summer. The labor activist has requested that a judge deem both the CEO's contract and the airport's contract with the firm that helped it find candidates for the CEO position. He argued that the contract between the firm and the airport was not properly approved and that the firm did not have correct licensing according to Michigan laws.

The former CEO's attorney has stated that his client should be awarded the severance package according to her contract because she was wrongfully fired.

When faced with lawsuits like this, it is important that Michigan businesses have a well-rounded understanding of the laws surrounding employment contracts. Because such laws are complex and involve not only local laws, but those at the state and federal level as well, speaking to an experienced employment contract attorney may be helpful.

Source: Detroit Free Press, "Turkia Awada Mullin not owed a penny, lawsuit alleges," John Wisely and Jim Schaefer, Dec. 21, 2011