What Does At-Will Employment Mean?

One of the most common philosophies governing employment in the United States is the idea of at-will employment.

For many Americans, landing a job is worth a sigh of relief: The long search is over, and they now have a position that might turn into a rewarding, long-term relationship. That may all be true, but employers have the right to terminate an employee at any time, without cause, for virtually any reason. This is the nature of being employed at-will, and it’s something that almost every employer asks their new hires to sign off on when they fill out their paperwork to accept the position.

Many people remain unaware of what the at-will philosophy means, however, as well as the exceptions that have been passed in quite a few states nationwide.

How is At-Will Justified for the Typical Employee?

One of the things that stands out about being hired at-will is the prospect of being coldly terminated from the job without cause. For many workers, this is actually a pretty scary scenario. It is, however, one that rarely occurs. In fact, most employers follow strict company procedures for termination that require disciplinary action prior to hiring. With that said, this is not a requirement. The justification for at-will policies is that workers also have the ability to leave the job at any time. This would be an “at-will” resignation of the position, without cause or advance notice to the employer required at the time of leaving the position. For this reason, it is argued that the at-will philosophy is fair to workers and their employers alike. Some states disagree, and they have passed additional laws and regulations strengthening employment rights and corporate responsibilities.

The Public Policy Exemption

It was mentioned earlier that, due to the at-will nature of most jobs, employees can be terminated from their existing position without cause. This is not a universal mandate to let workers go for any reason, however. The “public policy” exemption, which has been passed in all states except Alabama, Georgia, Louisiana, Maine, Nebraska, New York, Rhode Island, and Florida, requires employers to adhere to all state and federal laws and regulations when making a termination decision. This exemption means that employers cannot, for example, fire someone simply because they are a woman, a racial minority, or suffering from a disability. Were they to do so, the termination would be considered wrongful in the eyes of the state’s public policies. The state’s laws would then allow the worker to claim damages and file a lawsuit for the termination, which would not ordinarily be permitted otherwise.

The Implied Contract

Another common exemption to at-will policies is the “implied contract” exemption, which has been made law in 36 of 50 U.S. states. This exemption focuses on an implied contract, which can be unwritten between the employee and their employer. If such a contract exists at the time of the employee’s termination, they are permitted to sue their employer for a breach of that contract. An even more extensive law, known as the “covenant of good faith” exemption, takes this law even further and gives employees even more protections form harsh application of at-will policies.

A Tough Law with Some Key Worker Protections

Often controversial, the at-will philosophy of employment has been highly regulated by state legislatures all across the United States. Though at-will employment allows immediate termination without cause, these laws give workers recourse if those reasons are against state and federal laws or if they go against an implied contract, making this policy primarily beneficial to the employee.