What is "At Will" Employment?

Do you want to hire project based or temporary workers but are unsure of how to NOT get sued for wrongful termination? Review this informaiton for more answers:


What is At-Will Employment?

"At-Will Employment" means that if an employee is not covered by an employment contract, the employee can't be forced to stay with an employer and, in turn, an employer can't be forced to keep the employee and can terminate him/her at any time. In other words, the employee can quit at any time and the employer can let the employee go at any time. It has been the unwritten employment contract for decades. (It had its origin in English common law and had begun to gain acceptance in the U.S. by 1877.) However, during the past twenty years, some state courts have made exceptions to the "at-will" doctrine. These exceptions are designed to protect employees from abuse or unequal treatment by their employers. This opened the door for an onslaught of litigation. In many states, discharged employees can now recover economic losses and get their jobs back by proving: (1) that the employer broke an implied contract of continued employment (such as an implied promise of job security); or (2) that the termination was contrary to public policy (such as dismissal for refusing to violate a law). A few states also include (3) that the termination violated an implied covenant of good faith and fair dealing (meaning the company was unfair).

Limitations on At-Will Employment

Employers do not have the right to discriminate against an employee illegally or to violate state or federal laws, such as those controlling wages and hours. Most state discrimination laws are quite broad. In addition to protecting against the traditional forms of discrimination based on race, color, religion, national origin and age, many also protect against discrimination based on sexual orientation, physical and mental disability, marital status and receiving public funds. Separate state laws protect workers from being fired or demoted for taking advantage of laws protecting workers from discrimination and unsafe workplace practices. And there are a number of other more complex reasons that may make it illegal for an employer to fire you -- all boiling down to the fact that an employer must deal with you fairly and honestly.

Promises of Continued Employment

Unless you want to create an employment contract that obligates your employee to work for you for a period of time and limits your right to fire the employee for the same period, do not put language in your handbook that promises employees a job as long as they follow your rules. A court might interpret this as a contract of employment, promising that employees will not be fired absent good cause. To avoid this, state in the handbook that your company reserves the right to terminate employees for reasons not stated in the handbook or for no reason at all. Even though you may never have to rely on this language, at least your employees will know where they stand.