Exceptions to Employment at Will: A Comprehensive Analysis

Employment at will is a common law doctrine that presumes that employment relationships can be terminated by either the employer or the employee at any time, with or without cause or notice. However, there are several exceptions to this general rule, which can protect employees from wrongful termination. These exceptions include discrimination, retaliation, implied contract, public policy, and implied covenant of good faith and fair dealing.

Key Facts

  1. Discrimination: Under federal law, employers cannot terminate employees based on protected characteristics such as race, sex, age, disability, national origin, religion, or pregnancy status. Some states also include sexual orientation and gender identity as protected classes.
  2. Retaliation: It is unlawful for employers to terminate employees in retaliation for engaging in protected activities, such as reporting discrimination or participating in a workplace investigation.
  3. Implied Contract: In some states, an implied contract exception exists, which means that if an employer makes oral or written assurances of job security or follows specific termination procedures outlined in employee handbooks or policies, it may create an implied contract of employment.
  4. Public Policy: The public policy exception protects employees from termination when it violates a public interest or when employees engage in acts that are in the public interest, such as reporting illegal activities or refusing to perform illegal acts.
  5. Implied Covenant of Good Faith and Fair Dealing: In a minority of states, there is an implied covenant of good faith and fair dealing in employment relationships. This means that employers cannot terminate employees in bad faith or with malicious intent.

It is important to note that the specific exceptions to employment at will may vary depending on the state in which the employment relationship exists. It is advisable to consult with legal professionals or refer to state-specific laws for accurate and up-to-date information.

Discrimination

Federal and state laws prohibit employers from terminating employees based on protected characteristics such as race, sex, age, disability, national origin, religion, or pregnancy status. Some states also include sexual orientation and gender identity as protected classes. If an employee is terminated for a discriminatory reason, they may have a legal claim against their employer.

Retaliation

It is unlawful for employers to terminate employees in retaliation for engaging in protected activities, such as reporting discrimination or participating in a workplace investigation. Retaliation can take many forms, including termination, demotion, or other adverse employment actions. Employees who are retaliated against may have a legal claim against their employer.

Implied Contract

In some states, an implied contract exception exists, which means that if an employer makes oral or written assurances of job security or follows specific termination procedures outlined in employee handbooks or policies, it may create an implied contract of employment. If an employer breaches an implied contract, the employee may have a legal claim for damages.

Public Policy

The public policy exception protects employees from termination when it violates a public interest or when employees engage in acts that are in the public interest, such as reporting illegal activities or refusing to perform illegal acts. For example, an employer cannot terminate an employee for refusing to commit perjury or for reporting a violation of the law.

Implied Covenant of Good Faith and Fair Dealing

In a minority of states, there is an implied covenant of good faith and fair dealing in employment relationships. This means that employers cannot terminate employees in bad faith or with malicious intent. For example, an employer cannot terminate an employee to avoid paying retirement benefits or to prevent the employee from receiving a commission.

Conclusion

The exceptions to employment at will provide important protections for employees from wrongful termination. These exceptions vary from state to state, so it is important to consult with a legal professional or refer to state-specific laws for accurate and up-to-date information.

FAQs

What is employment at will?

Employment at will is a common law doctrine that presumes that employment relationships can be terminated by either the employer or the employee at any time, with or without cause or notice.

What are the exceptions to employment at will?

The exceptions to employment at will include discrimination, retaliation, implied contract, public policy, and implied covenant of good faith and fair dealing.

What is the discrimination exception to employment at will?

The discrimination exception prohibits employers from terminating employees based on protected characteristics such as race, sex, age, disability, national origin, religion, or pregnancy status.

What is the retaliation exception to employment at will?

The retaliation exception prohibits employers from terminating employees for engaging in protected activities, such as reporting discrimination or participating in a workplace investigation.

What is the implied contract exception to employment at will?

The implied contract exception allows employees to sue their employers for breach of contract if the employer makes oral or written assurances of job security or follows specific termination procedures outlined in employee handbooks or policies.

What is the public policy exception to employment at will?

The public policy exception protects employees from termination when it violates a public interest or when employees engage in acts that are in the public interest, such as reporting illegal activities or refusing to perform illegal acts.

What is the implied covenant of good faith and fair dealing exception to employment at will?

The implied covenant of good faith and fair dealing exception prohibits employers from terminating employees in bad faith or with malicious intent.