What is at will employment?
At-will employment is a legal framework in the United States that defines the employment relationship between an employer and an employee. Under this doctrine:
- Employment Can Be Terminated at Any Time: An employer can terminate an employee at any time and for any reason (or no reason at all), as long as it is not illegal (e.g., discrimination based on race, gender, religion, age, or disability).
- Employees Can Quit at Any Time: Similarly, employees are free to leave their job at any time without providing a reason or prior notice.
What States are At-Will?
In the United States, Montana is the only state that does not fully follow the at-will employment doctrine.
Why is Montana Different?
Montana has the Montana Wrongful Discharge from Employment Act (WDEA), which provides employees with protections not typically found under at-will employment. Under the WDEA:
- After a probationary period (commonly six months), employees can only be terminated for good cause or legitimate business reasons.
- Terminations without good cause may result in wrongful discharge claims.
The Rest of the U.S.
All other states default to the at-will employment doctrine, though many have exceptions (e.g., public policy violations, implied contracts, or bad faith).
How can at will employment be modified?
At-will employment can be modified through various mechanisms, either by agreement between the employer and employee or by laws and court decisions. These modifications create exceptions to the general rule that either party can end the employment relationship at any time for any reason. Here are the most common ways at-will employment can be modified:
- Employment Contracts
- Written Contracts: A formal employment contract can override at-will employment by specifying the terms of employment, including the duration, conditions for termination, or severance requirements.
- Oral Agreements: Verbal promises made by employers (e.g., “You’ll have a job as long as you meet your performance goals”) can sometimes be enforceable, depending on state laws.
- Implied Contracts: Even without a written agreement, an implied contract can arise from:
- Statements in employee handbooks.
- Company policies or practices that create expectations of job security.
- Employer behavior, such as consistently providing reasons for terminations.
- State-Specific Laws
- Some states impose restrictions on at-will employment through exceptions like:
- Public policy protections (e.g., prohibiting termination for whistleblowing).
- Good faith and fair dealing requirements in states like California or Nevada.
- The Montana Wrongful Discharge from Employment Act, which requires just cause for terminations after a probationary period.
- Union Contracts (Collective Bargaining Agreements)
- Unionized employees are typically covered by collective bargaining agreements (CBAs), which establish rules for hiring, discipline, and termination, overriding at-will employment.
- CBAs often require “just cause” for termination and provide grievance or arbitration processes.
- Company Policies and Employee Handbooks
- If an employee handbook includes language that implies job security (e.g., “Termination will only occur for specific reasons”), it may create an implied contract.
- To preserve at-will status, employers often include disclaimers stating that the handbook does not create a binding contract and that employment remains at-will.
- Court Decisions (Precedent)
Judicial rulings can set precedents in certain jurisdictions, interpreting implied contracts or public policy exceptions in ways that modify at-will employment.
Key Takeaway
At-will employment can be modified intentionally (via contracts, union agreements, or policies) or unintentionally (through implied contracts or ambiguous employer statements). Employers often use clear disclaimers and consistent policies to avoid unintentionally modifying at-will status.
Legal protections for at-will employees
At-will employees, while generally not guaranteed job security, are still protected by various legal protections at the federal and state levels. These laws safeguard employees from wrongful termination, discrimination, and other workplace violations. Here’s an overview of key protections available to at-will employees:
- Anti-Discrimination Protections
Employers cannot terminate employees based on membership in a protected class under federal and state laws, including:
- Title VII of the Civil Rights Act of 1964: Prohibits discrimination based on race, color, religion, sex (including pregnancy and gender identity), or national origin.
- Age Discrimination in Employment Act (ADEA): Protects employees aged 40 and older from age-based discrimination.
- Americans with Disabilities Act (ADA): Protects employees with disabilities and requires reasonable accommodations.
- Equal Pay Act (EPA): Prohibits gender-based pay discrimination.
- State Laws: Many states have additional protections for traits not covered federally (e.g., sexual orientation, marital status, political affiliation).
- Retaliation Protections
Employers cannot retaliate against employees for engaging in legally protected activities, such as:
- Filing discrimination complaints.
- Reporting workplace harassment.
- Participating in investigations.
- Whistleblowing (reporting illegal activity or unsafe working conditions).
Relevant laws include:
- Title VII of the Civil Rights Act.
- Sarbanes-Oxley Act (SOX) for financial whistleblowers.
- Occupational Safety and Health Act (OSHA) for safety-related complaints.
- Protections for Leave
Employees cannot be terminated for taking leave protected under federal or state law, such as:
- Family and Medical Leave Act (FMLA): Provides up to 12 weeks of unpaid leave for qualified family and medical reasons.
- State Leave Laws: Some states provide paid family leave, sick leave, or pregnancy leave.
- Public Policy Protections
Most states recognize exceptions to at-will employment where termination violates public policy, including:
- Refusing to engage in illegal acts at the employer’s request.
- Reporting illegal activities or unsafe workplace practices.
- Exercising legal rights, such as voting or serving on a jury.
- Contractual Protections
If an employment contract or implied agreement exists, at-will employees may gain additional protections:
- Written contracts may specify termination conditions or severance rights.
- Implied contracts (e.g., from promises in an employee handbook) can limit at-will termination.
- Wage and Hour Protections
Employers cannot terminate employees in retaliation for asserting rights related to wages or working hours:
- Fair Labor Standards Act (FLSA): Ensures minimum wage, overtime pay, and child labor protections.
- Many states have additional wage laws that employers must follow.
- Protections Against Wrongful Termination
Terminations that violate specific legal protections are considered wrongful terminations. Employees may have grounds to file a lawsuit or complaint with relevant government agencies.
- Unemployment Benefits
Even if terminated for non-protected reasons, many at-will employees are eligible for unemployment benefits, provided they:
- Were not terminated for misconduct.
- Meet state-specific eligibility requirements.
Key Takeaway
At-will employees are not without recourse. Legal protections ensure they are treated fairly and shielded from illegal practices. If an employee believes their rights were violated, they may file complaints with agencies like the EEOC or pursue legal action.
If you believe you have been wrongfully terminated, contact Fett Law today. Our wrongful termination lawyers offer free case evaluations and only take cases on a contingency fee basis, meaning there is no attorneys’ fees unless we win.
This page is for general informational purposes only and should not be considered legal advice. Only an attorney with comprehensive knowledge of employment law and the individualized facts of your case can tell you whether you have a claim. You should always consult with an attorney before taking or refraining from any action.
