How does at-will employment affect wrongful termination cases?

On Behalf of | Mar 7, 2025 | Employment Law |

Many workers believe that at-will employment gives employers unlimited power to fire employees. While at-will employment allows businesses to dismiss workers without cause, it does not give them the right to terminate employees for illegal reasons. Understanding the limits of at-will employment is crucial for both workers and employers.

What is at-will employment?

At-will employment means that employers can fire workers at any time and for any reason, as long as the reason is not illegal. Employees can also quit without providing a reason or notice. Most states in the U.S. follow at-will employment laws, but exceptions exist to protect workers from wrongful termination.

How wrongful termination claims arise in at-will employment

Even under at-will employment, firing an employee for discriminatory, retaliatory, or legally protected reasons can lead to a wrongful termination claim. Employers cannot fire workers based on race, religion, gender, disability, or other protected characteristics. Retaliation for reporting workplace violations or exercising legal rights, such as taking medical leave, also qualifies as wrongful termination.

Exceptions to at-will employment

Certain laws and agreements limit at-will employment. Employment contracts, union agreements, and company policies may require a valid reason for termination. Some states recognize an implied contract if an employer promises job security in an employee handbook or verbal agreement. The public policy exception also prevents terminations that violate fundamental legal rights, such as firing an employee for refusing to commit an illegal act.

Proving wrongful termination in an at-will employment state

Employees must provide evidence that their termination violated state or federal laws. Emails, witness statements, performance reviews, and company policies can support a claim. Legal assistance can help determine whether a case meets the standards for wrongful termination.

Protecting workplace rights

At-will employment does not eliminate employee protections. Understanding workplace rights and the limits of at-will employment can help prevent wrongful terminations and ensure fair treatment for all workers.

FindLaw Network