The state of Michigan has determined that a former city of Dearborn employee who was fired for making anti-Muslim remarks online did not commit misconduct and is eligible to receive unemployment benefits.

Bill Larion, 58, was terminated by the city last month after he posted on Facebook insulting remarks about a Muslim woman who was the first swimsuit model in Sports Illustrated to wear hijab and cover herself in accordance with Islamic beliefs.

Larion posted in reference to a photo of the model, Halima Aden, that appeared in the iconic swimsuit issue: "Cute picture should be on the cover of Camels are us."

The post sparked criticism from many in Dearborn, which is more than 46% Arab-American. Dearborn Mayor Jack O'Reilly Jr. blasted the comments, saying "I have zero tolerance for the type of language used in the Facebook comment."

The city then fired Larion for the comments, and for making what it said were false statements about his post to city police, its human resources department and the public. Larion had initially said he wasn't behind the Facebook post.

After being fired, Larion applied for unemployment benefits with the state of Michigan.

On June 12, the state's Unemployment Insurance Agency sent him a notice that said he qualified to receive benefits under the state's Michigan Employment Security Act (MES).

Obtained by the Free Press, the notice read: "You were fired from DEARBORN CITY PERSONNEL DEPT on May 08, 2019 for other company rules which is a violation of company policy. You were not aware of the policy and had not received prior warnings. Evidence has not been provided to establish misconduct."

The notice added: "You are not disqualified for benefits under MES Act, Sec. 29(1)(b)," referring to a state law on unemployment benefits.

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Under Michigan law, an unemployed worker can be disqualified from receiving benefits "if a worker becomes unemployed as a result of their own action, such as by quitting a job or being fired for misconduct," according to the state's employer handbook.

The city has until July 12 to appeal the state's decision.

Larion worked part-time as a surveyor for the city of Dearborn and is currently looking for work, said his attorney, Ed Zelenak.

"He's a talented surveyor," Zelenak said of Larion, who has applied for a couple of new jobs. "He's learned his lesson."

Larion previously apologized through Zelenak, who said earlier: "He feels bad about it. It's a horrible mistake. He feels awful and great embarrassment ... very childish and stupid."

Mary Laundroche, spokesperson for the city of Dearborn, said in a statement to the Free Press: "This morning, the City received the Unemployment Insurance Agency’s determination letter mailed on June 12, 2019, stating that Mr. Larion is not disqualified from receiving unemployment benefits. The City has until July 12, 2019, to appeal this determination."

Laundroche added: "At this time, the City will not be commenting further on this matter for the reason that the time period for appealing this determination has not expired."

Mayor O'Reilly had earlier criticized Larion's remarks: "The comment violates the City of Dearborn’s values and practices, as well as our expectations for employees. It violates the very heart of our mission statement, which is that we must earn the public’s trust in everything we do."

A spokesperson for the Unemployment Insurance Agency, which is part of the state's Department of Talent and Economic Development, did not comment Tuesday.

Contact Niraj Warikoo:nwarikoo@freepress.com, 313-223-4792, Twitter @nwarikoo