What are some exceptions to At-Will employment?

At-will employment is a doctrine in U.S. labor law that allows either the employer or the employee to terminate the employment relationship at any time, for any reason, or for no reason at all, with or without notice. However, there are several key exceptions to this rule that protect employees from wrongful termination. Here are some of the main exceptions:

Public Policy Exception:

• Employees cannot be terminated for reasons that violate public policy. This includes firing an employee for:
• Refusing to perform an illegal act.
• Reporting illegal activities (whistleblowing).
• Exercising a legal right (e.g., filing for workers' compensation).
• Performing a public duty (e.g., jury duty).

Implied Contract Exception:

• Even in the absence of a written contract, an implied contract may be formed based on employer statements, policies, or practices. For instance:
• Verbal promises from a manager or supervisor.
• Employee handbooks or company policies that suggest job security or specific procedures for termination.

Implied Covenant of Good Faith and Fair Dealing:

• This exception, recognized in a minority of states, means that terminations must be made in good faith and fair dealing. Employers cannot terminate employees to avoid paying benefits, bonuses, or other compensation owed.

Statutory Protections:

• Various federal, state, and local laws provide protections against termination for specific reasons, such as:
• Discrimination Laws: Employees cannot be terminated based on race, color, religion, sex, national origin, age (40 or older), disability, genetic information, or other protected characteristics under laws like Title VII of the Civil Rights Act, the Age Discrimination in Employment Act (ADEA), and the Americans with Disabilities Act (ADA).
• Retaliation: Employees cannot be terminated for asserting their rights under laws like the Occupational Safety and Health Act (OSHA), the Family and Medical Leave Act (FMLA), or the Fair Labor Standards Act (FLSA).
• Union Activities: Under the National Labor Relations Act (NLRA), employees cannot be terminated for engaging in union activities or collective bargaining.

Protected Leave:

• Employees taking leave under laws such as the FMLA or state-specific leave laws are protected from termination for exercising their rights to take such leave.

Contractual Obligations:

• If there is a formal employment contract in place, the terms of that contract may limit the employer's ability to terminate the employee at will. This could include:
• Fixed-term contracts.
• Contracts specifying conditions under which termination is permitted.

Constructive Discharge:

• If an employee resigns due to intolerable working conditions that effectively force them to quit, it may be considered a constructive discharge. If the conditions are proven to be illegal or in violation of public policy, the employer could be liable for wrongful termination.

Understanding these exceptions is crucial for both employers and employees to ensure that terminations are handled legally and fairly. Contact The Justice Law Firm, LLC today for a FREE consultation.