At-Will Employment: When “At-Will” Really Isn’t

At-will employment essentially means that an employer can terminate you at any time, for any legal reason. Sounds straightforward, but did you know that there are sometimes exceptions to this rule?

In this article, we discuss the circumstances where “at-will” doesn’t mean unlimited power for employers and how you can be protected from wrongful termination.

What Is At-Will Employment?

Most employees are at-will. This means that you do not have an employment contract and the employer can terminate you for any legal reason. They do not even have to provide you with notice. However, at-will employment doesn’t give employers unlimited power. Certain federal and state laws, as well as employment agreements, offer employees protections that prevent employers from firing them at will.

Common Exceptions to At-Will Employment

Most at-will employees who are let go will not have a case against the employer. However, there are certain situations that can sometimes protect employees:

Public Policy Exception

The public policy exception prevents employers from firing employees for reasons that violate public interest. This exception is recognized in most states and protects employees who engage in activities beneficial to society or refuse to participate in activities that go against public policy.

• Example: Suppose an employee reports illegal activities by their employer (known as “whistleblowing”). If the employer then fires the employee in retaliation, this would violate the public policy exception. Similarly, if an employee refuses to break the law on behalf of the employer, they should be protected under this exception.

Implied Contract Exception

Even in the absence of a written contract, certain verbal promises, company policies, or statements made in employee handbooks, letters or emails can create an “implied contract.” This exception is recognized in most states, although the interpretation varies by state.

• Example: If an employer makes statements during an interview or onboarding that imply job security (e.g., “You’ll always have a place here if you work hard”), that could potentially create an implied contract. Similarly, if an employee handbook lists specific steps for termination, employers might be expected to follow them before firing an employee.

Covenant of Good Faith and Fair Dealing

This exception, which is only recognized in a few states, implies that the employment relationship should be conducted with fairness and honesty. Under this covenant, an employer cannot terminate an employee to avoid financial obligations or other benefits they’ve earned.

• Example: Suppose an employee has worked at a company for almost 20 years and is set to receive a pension if they complete the 20th year. If the employer fires them just before they reach the milestone to avoid paying the pension, this may be considered a violation of good faith.

Statutory Exceptions

Numerous federal and state laws protect employees from being terminated based on specific characteristics or activities. These laws override at-will employment and safeguard employees from discrimination, retaliation, and other unlawful practices.

• Anti-Discrimination Laws: The Civil Rights Act, Americans with Disabilities Act, Age Discrimination in Employment Act, and other laws make it illegal for employers to terminate employees based on race, color, religion, sex, national origin, age, disability, or genetic information.
• Retaliation Protections: Under laws like the Fair Labor Standards Act (FLSA), Family and Medical Leave Act (FMLA), and Occupational Safety and Health Act (OSHA), employees are protected from retaliation for exercising their rights, such as taking medical leave, reporting safety violations, or filing wage complaints.

Union and Collective Bargaining Agreements

Unionized employees are usually not at-will employees. Instead, they are typically covered by collective bargaining agreements that outline specific conditions under which they can be terminated. These agreements provide a higher level of job security by requiring “just cause” for termination and offering a clear grievance process.

How You Can Protect Yourself

While at-will employment allows flexibility, understanding your rights can help protect you from wrongful termination. Here are some tips:

• Document Promises and Policies: If your employer makes verbal promises about job security, note them down. Keep copies of employee handbooks and any emails or documents that outline termination procedures.
• Know Your Rights Under Relevant Laws: Familiarize yourself with federal and state labor laws, especially those related to discrimination, harassment, whistleblower protections, and family leave.
• Be Cautious About Signing Agreements: Some employers ask employees to sign waivers or arbitration agreements, which may limit their rights in certain disputes. While signing the agreement may be a condition of employment, if you’re unsure, consult with an employment attorney.

What to Do If You Think You Were Wrongfully Terminated

If you believe you were wrongfully terminated, contact an employment attorney as soon as possible. In the meantime, gather documentation. Collect any relevant documents, emails, and notes that support your case. This might include performance reviews, employee handbooks, emails discussing your work, or communications that imply job security.

Conclusion

While at-will employment is very common, there are many protections in place to prevent wrongful termination. If you’re unsure about your employment status or feel that you’ve been treated unfairly, please contact an employment attorney.

See Also:

• Can Your Employer Look At Your Text Messages?
• How A Strong Personal Brand Can Make You More Money

Disclaimer: This article is intended for informational purposes only. It provides general information and is not intended and should not be construed as professional advice. The author is not your attorney, accountant, financial planner or any other professional and no professional-client relationship is created. We do not represent that the information provided is accurate or up-to-date as laws and regulations are always changing. If you have an issue that requires professional help, you should contact the appropriate professional to help you on your specific set of facts. Please read the Terms and Conditions for additional information.