At-Will Employment: Can Employees Leave Without Notice?

At-will employment is a default employment arrangement in the United States, except in Montana, where employees are protected from being fired without cause after completing a probationary period. Under at-will employment, employers can dismiss employees or alter the terms of employment without notice or penalties, as long as the reason is not illegal, such as discrimination or retaliation. Conversely, at-will employees can also leave their job at any time without incurring liability. This flexibility in termination decisions is justified by proponents as allowing employees to leave their job without reason or warning. However, critics argue that the employment relationship is characterized by an inequality of bargaining power. While at-will employment provides flexibility, employers must understand good faith versus wrongful termination to avoid legal action.

At-Will Employment Law

Employees can leave at any time, for any reason

In the United States, at-will employment is a common feature of the employer-employee relationship. At-will employment means that an employer can terminate an employee for almost any reason, without warning, and without having to establish "just cause" for termination. However, this also works the other way – employees are just as free to leave their job at any time, for any reason, without incurring liability.

This means that employees can quit their job whenever they want, at their own discretion. They are not legally obliged to provide notice before leaving, although employers may request this as a courtesy. Quitting suddenly could, however, result in a bad reference from the employer.

There are some exceptions to the at-will doctrine. For example, an employee cannot be terminated for reasons that are illegal under state or federal law, such as discrimination or whistleblowing. In addition, some states recognize an implied covenant of good faith and fair dealing in employment relationships, which prevents employers from terminating employees in bad faith or with malice.

At-will employment is the default in every US state except Montana, which protects employees who have completed an initial "probationary period" from being fired without cause. In other states, employers are free to adopt at-will employment policies, and many have done so.

Employers can terminate at any time, except for illegal reasons

In the United States, at-will employment is a type of employment relationship in which the employer or employee can terminate their employment contract at any time, for almost any reason, without any prior notice. This means that employers can terminate employees at will, for any or no reason, and without warning. However, the termination cannot be for illegal reasons, and the reasons that are considered illegal vary from state to state.

At-will employment is the default rule in most U.S. states, and it gives employers the freedom to terminate employees without having to establish "just cause" for termination. This means that employers do not need a good faith reason to fire an employee and are not legally required to provide the reason for the termination. However, there are exceptions to the at-will rule, and employers can face legal consequences if they terminate an employee for certain illegal reasons.

Illegal reasons for termination include discrimination based on protected characteristics such as race, sex, age, nation of origin, disability, or genetic information. Federal laws such as Title VII of the Civil Rights Act of 1964 and the Americans with Disabilities Act (ADA) prohibit discrimination based on these characteristics. Retaliation against an employee for exercising their legal rights is also prohibited. For example, it is illegal to terminate an employee for whistleblowing or reporting illegal activities, fraud, or unethical behavior within the company. Additionally, employers cannot terminate an employee for taking family or medical leave as outlined in the Family and Medical Leave Act of 1993.

While at-will employment provides flexibility for both employers and employees, it is important for employers to understand the legal limitations and ensure they do not engage in illegal termination practices. Employees should also be aware of their rights and seek legal advice if they believe their termination was illegal.

Exceptions: public policy, implied contract, and good faith

The employment-at-will doctrine does allow for some exceptions where termination could be considered wrongful. These exceptions include public policy, implied contract, and good faith.

Public Policy

An employee cannot be terminated in violation of well-established public policy. For example, an employee who files a workers' compensation claim after an on-the-job injury is protected by public policy and cannot be terminated as a result. What constitutes a violation of public policy may vary from state to state.

Implied Contract

An implied contract is based on the reasonable expectation of the employee that they will remain employed for a fixed term or even indefinitely, due to the employer's actions. These actions could include statements made by the employer, standard practices such as only firing employees for a cause, or assertions in an employee handbook outlining specific termination procedures. In such cases, the employment is no longer considered 'at-will'.

Good Faith

The concept of good faith in employment law revolves around the idea of acting fairly and honestly towards employees. While there may be no explicit contract or agreement, the principle of good faith assumes a certain level of loyalty, trust, and fairness in the employment relationship. Violations of good faith could include situations where an employer misrepresents important information, acts deceptively, or fails to uphold their end of the employment agreement.

It is important to note that the specific laws and exceptions may vary by state and jurisdiction, and each case is unique.

Wrongful termination: discrimination, retaliation, and whistleblowing

At-will employment is a doctrine in US labour law that allows employers to dismiss employees without warning and without having to establish "just cause" for termination. However, this does not include reasons that are illegal under state and federal law, such as discrimination based on race, religion, or gender.

At-will employment does not protect employers from wrongful termination claims. Employees can file a wrongful termination claim if they are fired for exercising their legal rights or complaining about illegal behaviour, such as workplace harassment or discrimination. This is considered retaliation, which is prohibited under employment law.

To prove retaliation, employees must show a direct link between their complaint or report and the adverse action taken against them. Timing is crucial, and the less time between the complaint and the negative action, the stronger the claim. Employees may need to file a complaint with a government agency, such as the Equal Employment Opportunity Commission, before taking legal action.

Whistleblowing is a form of retaliation where employees report that their company has broken laws unrelated to workers' rights, such as consumer protection or shareholder fraud. Whistleblower retaliation can come in many forms, including wrongful termination, demotion, or other adverse employment actions. Employees must show that they engaged in protected activity, such as disclosing unlawful activity to the government, and that their employer subjected them to retaliatory action.

It is important to note that the rules for bringing wrongful termination claims may vary from state to state, and an experienced lawyer can help determine the specific requirements and protections in each state.

Employment-at-will: a two-way street

Employment-at-will is a two-way street. In the United States, at-will employment is the default in every state except Montana. This means that an employer can terminate employees for almost any reason, without warning, and without having to establish "just cause" for termination. However, this also means that employees can decide to leave their employer whenever they want, at their own discretion.

At-will employment does not protect termination for all reasons. There are several exceptions to at-will employment, including the public policy exception, which bars an employer from terminating employees in violation of well-established public policy, such as an employee filing a workers' compensation claim after an on-the-job injury. Other exceptions include the implied covenant of good faith and fair dealing, which prevent employers from terminating employees in bad faith or with malice, and the implied contract exception, which means that an employee has a reasonable expectation of a fixed term or indefinite employment based on the employer's actions.

At-will employees are also protected under state and federal law from being fired for reasons that are discriminatory or based on certain characteristics such as race, religion, gender, sexual orientation, age, national origin, or disability status. These protections fall under laws such as the Civil Rights Act, the Americans with Disabilities Act (ADA), and the Family Medical Leave Act (FMLA).

While at-will employment provides flexibility for both employers and employees, it can also lead to higher employee turnover, increased stress and anxiety for employees due to the lack of job protection, and challenges for business planning. Additionally, it gives employers the power to alter the terms and conditions of employment relationships without giving notice or facing negative consequences.

It is important to note that while at-will employment is the default, employers and employees are free to contract otherwise. Employment contracts can provide job security by specifying a fixed term of employment or outlining the reasons for which an employee can be dismissed.

Frequently asked questions