Employment at Will

Additional HR Resources How Supervisors Terminate Help your supervisors fire without creating a legal firestorm Legally-Safe Terminations How to fire employees while minimizing legal risks Training for Supervisors Legally-sound guidance for supervisors on hiring, firing, and more The Decision to Terminate Supervisor basics for firing, discipline, documentation, and more Guidance for HR Employment-at-will, hiring, firing, and other HR hot spots Guidance for Supervisors Help your leaders tackle management and legal issues The Latest from Your State State-specific cases and recent legislative action Federal Laws and Regulations Advanced warning of upcoming federal regulations and legislation ADA Compliant Handbook Learn how to update your employee handbook with the latest regs

Every state except Montana follows the basic premise that employees who don't have a written contract are "at will." That means you can fire them (and they can quit) for any reason or no reason, as long as its not illegal.

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Every state recognizes at least one of the following exceptions to at-will employment:

Public policy exception
In more than 40 states you can't fire employees for reasons that violate an established public policy of the state.

Implied contract exception
In most states, courts may find you entered into an implied contract with employees by making certain promises to them – usually in your employee handbook. Your handbook or policies might contain promises to your employees that you’ll follow certain procedures before firing them. These assurances may create an implied contract with employees to do what you said you would do. In effect, that turns an at-will employee into a contractual one.

Also, an implied contract made have been made when you or a supervisor assured an employee that his job was secure. This and other similar statements could create an oral employment contract which a potential employee could sue to make enforceable. Finally, your initial letter offering the employee a job could be construed as an employment contract as well depending on the manner and structure of the letter.

Covenant of good faith and fair dealing
In fewer than 15 states, employers have a duty to act fairly and in good faith in all dealings with employees.

Federal and state employment laws
Another big exception to at-will employment is that you can't fire a worker in violation of federal or state employment laws, such as Title VII of the Civil Rights Act of 1964, the Family and Medical Leave Act (FMLA), and the Americans with Disabilities Act (ADA). Even in at-will states, the Uniformed Services Employment and Reemployment Rights Act (USERRA) offers additional job-loss protection to veterans who return to their jobs with your company. These laws guard against terminations for illegal reasons such as discrimination, retaliation, and whistleblowing.

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Related articles on Employment at Will featured in HR Hero Line

• Tenth Circuit Reaffirms Importance of Handbook Disclaimers
  (Wyoming Employment Law Letter, January 2010)
• Tips for Minimizing Risk When Cutting Labor Costs
  (Colorado Employment Law Letter, December 2009)
• Employer's Guide to Writing Employee Handbooks
  (New York Employment Law Letter, August 2009)
• Tips for Creating Sound Documentation to Avoid Lawsuits by Employees
  (South Carolina Employment Law Letter, November 2007)

HR Tools for Employment at Will

• Sample Policy - Employment Contracts
• Sample Policy - Employment at Will