What Are the Exceptions to At-Will Employment?
At-will employment is the default employment arrangement in most states, allowing either the employer or the employee to terminate the employment relationship at any time, for any reason, or for no reason at all. However, there are important exceptions to this rule that protect employees from unfair treatment and wrongful termination. Understanding these exceptions can help you recognize when your rights may have been violated and what steps you can take to protect yourself.
In this blog post, we will explore the key exceptions to at-will employment, define important legal terms in plain English, and provide guidance on what to do if you believe you’ve been wrongfully terminated.
Understanding At-Will Employment
At-will employment means that an employer can terminate an employee at any time, for any reason, without prior notice, and similarly, an employee can leave a job at any time without reason or notice. This arrangement provides flexibility but also places employees at risk of termination without cause. However, there are several legal exceptions that limit an employer’s ability to terminate employees under certain conditions.
What Is Wrongful Termination?
Wrongful Termination: Occurs when an employee is fired in violation of federal or state laws, employment contracts, or public policy. Wrongful termination claims can arise from discrimination, retaliation, or breach of contract.
Key Exceptions to At-Will Employment
While at-will employment is the norm, several important exceptions exist to protect employees from unjust dismissal. These exceptions can vary by state, but the most common ones include:
Public Policy Exception
Definition: The public policy exception prevents employers from firing employees for reasons that violate public policy. This includes actions such as refusing to engage in illegal activities, reporting violations of the law (whistleblowing), or exercising a legal right (such as filing for workers' compensation).
Example: If an employee is terminated for reporting unsafe working conditions to a government agency, this could be considered wrongful termination under the public policy exception.
Implied Contract Exception
Definition: Even if there is no written contract, an implied contract may exist based on the employer’s policies, statements, or actions. If an employer makes promises about job security or outlines specific procedures for termination in an employee handbook, these can create an implied contract that limits the employer’s ability to terminate at will.
Example: If an employee handbook states that employees will only be fired for cause, and an employee is terminated without cause, this could be a violation of the implied contract.
Covenant of Good Faith and Fair Dealing
Definition: This exception, recognized in some states, requires that employers act in good faith and not terminate employees for malicious reasons or in bad faith. It’s designed to prevent terminations made to avoid obligations, such as paying out bonuses or benefits.
Example: If an employer fires an employee just before a large commission or bonus is due to avoid payment, this could be considered a breach of the covenant of good faith and fair dealing.
Statutory Exceptions
Definition: Various federal and state laws protect employees from termination based on discriminatory reasons or retaliation. These laws provide statutory exceptions to at-will employment, ensuring that employees cannot be fired for reasons such as race, gender, age, disability, or for engaging in protected activities like unionizing.
Example: Under the Americans with Disabilities Act (ADA), an employer cannot legally terminate an employee because of their disability, as long as the employee can perform their job with reasonable accommodations.
What Is Retaliation?
Retaliation: Unlawful retaliation occurs when an employer takes adverse action against an employee for engaging in legally protected activity, such as reporting discrimination, filing a complaint about workplace safety, or participating in an investigation. Retaliation can include termination, demotion, harassment, or other negative employment actions.
Common Scenarios and Examples
Understanding how these exceptions apply can help you identify potential wrongful termination cases. Here are some common scenarios where at-will employment exceptions might come into play:
Whistleblowing: An employee reports their employer to a government agency for violating environmental regulations. If the employer retaliates by firing the employee, this could be a wrongful termination under the public policy exception.
Promised Job Security: An employer tells an employee during the hiring process that they will only be terminated for poor performance. If the employee is later fired without cause, this could be a breach of an implied contract.
Discrimination: An older employee is terminated shortly after disclosing their age during a company survey, even though they have a strong performance record. This could be a violation of the Age Discrimination in Employment Act (ADEA) and an example of wrongful termination.
Retaliation for Workers' Compensation Claim: An employee who files a workers' compensation claim after being injured on the job is fired shortly thereafter. This could be considered retaliation and a violation of state workers' compensation laws.
What Is an Employment Contract?
Employment Contract: A formal agreement between an employer and employee that outlines the terms and conditions of employment. Contracts can be written, oral, or implied, and they may include provisions regarding job security, salary, benefits, and reasons for termination. Breach of contract can lead to wrongful termination claims if an employer violates the agreed-upon terms.
What to Do If You Believe You’ve Been Wrongfully Terminated
If you believe you’ve been wrongfully terminated, it’s important to take immediate steps to protect your rights and build a strong case.
Document Everything: Keep detailed records of your employment, including performance reviews, emails, and any communication regarding your termination. Documentation is crucial for proving your case.
Review Employment Documents: Carefully review your employment contract, employee handbook, and any other documents related to your job. Look for language that might indicate an implied contract or other protections.
File a Complaint: If you believe you were terminated for discriminatory reasons, you can file a complaint with the Equal Employment Opportunity Commission (EEOC) or your state’s labor agency. For other types of wrongful termination, consult with a legal professional on how to proceed.
Consult an Attorney: Wrongful termination cases can be complex, and having legal representation is essential. An attorney can help you understand your rights, evaluate your case, and take appropriate legal action, such as filing a lawsuit against your former employer.
What Is the Equal Employment Opportunity Commission (EEOC)?
Equal Employment Opportunity Commission (EEOC): A federal agency responsible for enforcing laws against workplace discrimination. The EEOC investigates complaints of discrimination based on race, color, religion, sex, national origin, age, disability, and genetic information. If the EEOC finds evidence of discrimination, it may pursue legal action on behalf of the employee or issue a “right to sue” letter, allowing the employee to file a lawsuit.
Conclusion
While at-will employment gives employers broad discretion to terminate employees, there are critical exceptions that protect workers from unfair treatment and wrongful termination. Understanding these exceptions can help you recognize when your rights have been violated and what steps you can take to seek justice.
If you have specific questions or need personalized assistance in dealing with a wrongful termination case, our hotline is available to provide the guidance you need. Reach out to us today to ensure your rights are fully protected under the law, and we’ll connect you to an experienced attorney.