A former employee claims she was terminated after reporting what she believed were violations of federal wage laws, according to a recently filed lawsuit that raises questions about workplace protections and employer compliance with the Fair Labor Standards Act.
The complaint was filed by Annette Sloan on March 17, 2026, in the United States District Court for the Eastern District of Michigan against her former employer, Eden Foods, Inc., a domestic profit corporation headquartered in Clinton, Michigan.
According to the filing, Sloan had more than a decade of experience in accounting and payroll when she was hired as Eden Foods’ Payroll Accountant. Her responsibilities included preparing and processing bi-weekly payroll for all company employees, auditing records for accuracy, managing wages, taxes, deductions, benefits, and ensuring compliance with both federal and state employment laws. Sloan’s performance reviews were described as consistently positive; her supervisor noted that she was “extremely knowledgeable in payroll rules and responsibilities” and called her “a great asset to the company.”
The dispute centers on Sloan’s repeated efforts to alert management to what she identified as improper payroll practices. The complaint states that Sloan raised concerns about instances where salaried employees’ pay was docked for partial-day absences—a practice which she asserts violates the salary basis requirement under federal regulations (29 C.F.R. § 541.602). She also reported cases where timesheets reflected unpaid hours owed to employees due to what she described as improper procedures.
Sloan claims her warnings were ignored by management at multiple levels—including Vice President Sherri Laing—and that her belief regarding violations of the Fair Labor Standards Act (FLSA) was objectively reasonable. The complaint further details an incident on October 7, 2025: Sloan emailed external legal counsel Maureen Rouse-Ayoub seeking clarification on salary deduction rules for exempt employees who had exhausted their leave time. She wrote: “I need clarification on when employers are allowed to deduct for full day absences for salary exempt employees who have exhausted all of their vacation and sick time. My understanding is that pay cannot be deducted for partial day absences.” Rouse-Ayoub confirmed that this interpretation was correct.
Shortly after sending this email—on which she copied her supervisor Jonathan Turner—Sloan says Turner summoned her to a meeting where he warned her not to communicate with external counsel per instructions from company president Michael Potter. According to the complaint, Potter became hostile during a subsequent call with Sloan, telling her in a “demeaning and condescending manner” that she was “not qualified” to raise any concerns regarding payroll issues.
Sloan alleges that after this confrontation she attempted again to report additional discrepancies but was told by Potter to “Get out of here!” She then left work early after informing coworker Jenny Blumhardt about the situation and texting Turner about her distress over being treated in such a manner.
The following day—less than twenty-four hours after contacting external counsel—Sloan says she was terminated effective immediately. The stated reason given by Turner was allegedly “slamming the door” upon leaving the previous day’s meeting; however, Sloan denies acting in a hostile or insubordinate manner. The complaint notes that other explanations later offered by Eden Foods included leaving work early without notice and having harsh interactions with management—reasons which Sloan argues are pretextual given company policies do not require advance notice from salaried employees nor had she previously been disciplined for such conduct.
The lawsuit accuses Eden Foods of violating Section 215(a)(3) of the Fair Labor Standards Act by retaliating against an employee who engaged in protected activity—namely raising concerns about potential wage law violations both internally and through communication with legal counsel. It asserts there is a causal connection between these protected activities and Sloan’s termination.
As relief, Sloan seeks declaratory judgment along with compensatory damages including lost wages and benefits; punitive damages; compensation for emotional distress; attorneys’ fees; prejudgment interest; and any further remedies available at law or equity.
Attorneys Noah S. Hurwitz (P74063) and Kara F. Krause (P85487) of Hurwitz Law PLLC represent Annette Sloan in this matter (Case No.: 2:26-cv-10889-TGB-KGA).
Source: 226cv10889_Annette_Sloan_v_Eden_Foods_Complaint_Eastern_District_of_Michigan.pdf
