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Employment at-will: Employment Law 101: #3 of 60
December 02, 2005 by Ross Runkel at LawMemo
What does it mean to say one state is an "at-will" state and another state is not? What is "at-will employment" anyhow?
The "at-will doctrine" is a rule of contract law (which is state law). The rule is that an employee can quit at any time and an employer can fire an employee at any time and for any reason. Because this is a contract rule, the employer and employee are free to change it by agreement. But if their agreement is silent on the question, then the employee can be discharged without warning, without a hearing, and without a reason.
[Employment Law 101, published Monday-Wednesday-Friday, is a series designed to give you ideas and help you spot legal issues. It is not a substitute for a good lawyer or thorough research. For the most current developments in employment law court cases, try Employment Law Memo - World's Best.]
When the at-will doctrine is applied by a court, here is what happens as a matter of contract law:
- A job that is described as "permanent" does not mean that it will last forever. It means only that the job is not temporary or not seasonal.
- The employer can discharge the employee at any time and for any reason.
- The employer can discharge the employee for a really stupid reason. For example, simply because the employee asked for a day off.
- The employer can discharge the employee without any warning. For example, for the very first time the employee comes in 5 minutes late.
- The employer can discharge the employee without offering the employee any kind of "hearing" or chance to explain.
- The employer is not required to give an employee two-weeks notice, or any advance notice at all.
- The employer is not obligated to tell the employee the reason for the discharge.
Every state has a different approach, so the law will be different from one state to the next. It's pretty hard to find a state that follows the at-will doctrine without any exceptions; and it's hard to find a state that doesn't follow the doctrine at all. States tend to fall somewhere in between.
Because the at-will doctrine provides an employee no job protection at all, it is important to understand that there are a lot of exceptions. In some states there are so many "exceptions" that one might conclude that the state is not an "at-will state" at all.
Here are some exceptions:
- A contract between the employer and employee that provides greater protections for the employee.
- A collective bargaining agreement between a union and the employer that provides for discharge only if there is "just cause."
- Wrongful discharge in violation of public policy.
- Federal statutes that prohibit certain kinds of discrimination, allow for medical leaves, protect whistleblowers, or provide other protections.
- State statutes that are similar to the above federal statutes. (Some state statutes provide the employee with greater protections than the federal statutes provide.)
- An implied promise.
- Promissory estoppel.
- Employer's handbook, manual, or policies.
- Intentional infliction of emotional distress.
- Duty of good faith and fair dealing.
Coming next: Just cause under a collective bargaining agreement: Employment Law 101: #4 of 60
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Editor: Ross Runkel, Professor of Law Emeritus. email Ross@LawMemo.Com, Phone 503-399-8028. Copyright LawMemo, Inc.
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