At-Will Doctrine

Explore the at-will employment doctrine’s impact on job security and termination rights in the US, highlighting key legal exceptions. Understand how at-will affects both employers and employees, with insights into valid termination causes and protections.

By Douglas Wade, Attorney

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Table of Contents

1. Introduction

2. What does an at-will worker mean?

3. What is a valid cause of termination?

4. When might an at-will employee’s termination be considered illegal?

5. According to the at-will doctrine, who else is immune from termination?

6. At-will doctrine: Not as scary as it sounds

Introduction

Understanding the nuances of the at-will doctrine is crucial for both employers and employees, especially since nearly all of the relationships between employers and workers in the US are assumed to be “at-will.”

At-will employment essentially implies that a company can fire an employee for any cause, however, there may be a few legal limitations allowed by federal and state regulations. In a similar vein, employees are free to quit their employers at any time and for any reason pursuant to the at-will doctrine.

Do you wish to know more? To assist you in better understanding at-will doctrine, let’s take a quick look at at-will employment.

What does an at-will worker mean?

The majority of employment arrangements are at-will, as was previously noted. The workplace regulations or printed handbook of the company will often contain a clear description of the at-will arrangement.

Furthermore, several employers may require their new hires to sign contracts that expressly address the subject of at-will dismissal when they begin work. Crucially, however, the phrasing may simply state that the employer may fire a worker at any moment; the term “at-will” is not normally required by law. The at-will doctrine still applies to this.

While some companies may permit discussions or be open to reaching a mutually agreeable solution regarding job security, failing to execute the at-will employment portions of the papers could end in dismissal or unwillingness to hire.

What is a valid cause of termination?

All things considered, workers are fired according to the at-will doctrine for almost any cause, barring protections afforded by federal or state laws—for example, inclusion in a “protected class”—which will be discussed later.

A company could theoretically fire a worker for no other reason than that, say if they don’t like the worker’s favorite sports team. In principle, the reasons could appear to be minor, but in practice, hiring managers generally don’t want to waste efforts on firing someone for such insignificant inconsistencies.

But just as an employee might quit a job that doesn’t suit them, businesses can use the legal structure in place to their advantage and have the authority to sever professional relationships with an employee who isn’t a suitable fit for the team or workplace.

When might an at-will employee’s termination be considered illegal?

There are certain rather significant exceptions to the general rule that states that employers can dismiss an at-will worker for almost any cause. For instance, it is illegal for a company to terminate a worker due to discriminating factors such as the worker’s:

Age
Sex
Race
Disability
Religion
National origin
Pregnancy status

Among other things, federal and frequently state laws specifically created these protected classes. Furthermore, gender identity and sexual orientation are prohibited types of discrimination in some states, but not in others.

In a similar vein, retaliation is frequently grounds for termination that are illegal. An employee cannot be dismissed for reporting discrimination, for example. However, these are only a handful of the exclusions from the employer’s right to fire a worker for any cause.

According to the at-will doctrine, who else is immune from termination?

Individuals who work under contract for a predetermined amount of time are probably not covered by the at-will employment doctrine. The agreement will usually state that a worker may only be dismissed for criminal reasons or another specific reason specified in the agreement in such a situation.

In certain situations, there might not be an official agreement, but the company may have stated unequivocally in several statements that they won’t terminate a worker for arbitrary reason at all or that there would be chances to enhance performance prior to dismissal. Although it can be difficult for a worker to prove, these are additional grounds to contest a termination. It’s known as an implicit contract exception in the states when this is the situation.

Because the onus of proof is primarily on the worker, it can be challenging for a worker to demonstrate wrongful termination. If a worker is suspected of having a criminal purpose, they must prove it with greater clarity because the employer may always give another explanation for terminating them. Temporary work arrangements, although often at-will, may offer unique considerations regarding termination and job security.

At-will doctrine: Not as scary as it sounds

The bottom line is that firing a worker arbitrarily for no apparent reason is not in the best financial or commercial interests of the company. Because of this, the at-will doctrine sometimes gives the impression that things are worse than they actually are. For the benefit of both parties, it is helpful to be aware of the protected classes in which termination is prohibited.

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