A 25-year veteran of the Michigan State Police is suing the agency and its director, Col. James Grady, in federal court, alleging harassment, a hostile environment and emotional distress. 

Sarah Krebs is seeking lost wages and the value of fringe benefits, along with an unspecified amount of punitive and compensatory damages, according to the court documents. 

"Inspector Sarah Krebs dedicated 25 years of service to the Michigan State Police and worked tirelessly to make the department more inclusive and accountable. Instead of being supported, she was punished for speaking out against discrimination and misconduct at the highest levels of leadership," said Todd Flood, managing partner of Flood Law, which is representing her. "This lawsuit isn't just about one person's career; it's about restoring integrity and fairness within our law enforcement agencies."

When asked for a comment on the lawsuit, Michigan State Police provided a statement that included, in part, "All state departments are required to follow civil service rules and federal law when it comes to hiring practices."

The alleged incidents highlighted in the lawsuit allegedly occurred toward the end of Krebs's time with the state police, and shortly before and during her time as the agency's Chief Diversity, Equity, and Inclusion Director. 

The lawsuit also alleges that Krebs suffered retaliation and retaliatory harassment in violation of Title VII, a hostile environment and harassment in violation of the Elliott-Larsen Civil Rights Act, and intentional infliction of emotional distress. 

"Krebs claims that after she raised internal concerns about racially motivated hiring practices and a toxic workplace culture, she was stripped of her authority, removed from leadership duties, and ultimately targeted in retaliatory internal investigations," her lawyers said. 

In 2022, the lawsuit claims that Krebs was one of two candidates for the Chief DEI officer position and received the appointment to the role that December.  

In the ongoing months, the lawsuit claims the one-on-one meetings between Grady and Krebs were canceled. A new organization chart appeared to take away her decision-making authority, leaving her with an educational role only, the lawsuit further claims. Krebs was moved out of an office in the human resources department into a cubicle area with no privacy, the lawsuit claiming this was an example of adverse employment action. 

Another incident she related in her lawsuit happened in December 2024, when another MSP employee allegedly "forcibly kissed her in front of other agency members."   

Krebs said she found her access to Internal Affairs reporting software was revoked in March 2025, the lawsuit claims, and was not invited to a meeting in April 2025 that other captains and inspectors in the agency were attending. 

Later, Krebs was informed that she was being reassigned from her position as DEI officer. 

Krebs retired in September 2025.