March 29, 2025

I have worked in the HR industry for 16+ years to include my time being an entrepreneur and most of the directors/senior leaders/business owners that I have worked with have a huge misconception about At-Will Employment. Too many times, I have told leaders, “Yes, you can fire an employee, with or without cause, but that will not stop them from potentially suing for wrongful termination or discrimination.” As such, in this blog, I aim to provide an overview of at-will employment, shedding light on the key points that both employers and employees should know to navigate this complex issue with confidence and clarity.

What is At-Will Employment and How Does It Work?
Let’s start off by defining the concept of at-will employment. At its core, at-will employment allows either the employer or the employee to terminate the employment relationship at any time, with or without cause, and without prior notice. The idea behind this concept is to offer both parties flexibility – employees have the freedom to leave a job that no longer fits their needs, and employers can make staffing changes when necessary.

Exceptions to At-Will Employment
Ok, so this seems pretty easy and straightforward, right? But wait, it’s important to note that there are certain limitations to protecting employees that employers should consider.

While at-will employment offers flexibility, it is NOT absolute. There are several exceptions that can limit the ability of an employer to terminate an employee freely. See the exceptions below:

  • Discrimination Laws:
    Employees are protected from discrimination and wrongful termination in violation of federal laws such as Title VII of the Civil Rights Act, the Americans with Disabilities Act (ADA), and the Equal Pay Act. Therefore, termination or treatment based on protected characteristics such as race, color, national origin, gender, disability, or religion is illegal.
  • Retaliation:
    Employers are prohibited from terminating employees in retaliation for engaging in protected activities such as filing a complaint about unsafe working conditions, participating in an investigation into illegal conduct, or asserting their rights under labor laws, such as the Family and Medical Leave Act, or the Fair Labor Standards Act.
  • Public Policy Exceptions:
    In some states, employers cannot terminate employees for reasons that violate public policy. This means employees are protected from being terminated for engaging in activities such as:
    o Whistleblowing (reporting illegal activity)
    o Serving on a jury
    o Filing a workers’ compensation claim; or
    o Taking time off for military leave or other legally protected activities
  • Implied Contracts:
    Even in at-will employment, an implied contract can arise from verbal agreements, written communications, or company policies. For example, if an employee is assured that termination will only occur after multiple warnings or corrective steps, this could imply a policy that limits at-will termination and overrides standard at-will provisions.

How Employers Can Avoid Unethical and Legal Trouble
To ensure that at-will employment does not become a tool for unfair treatment and unethical behavior, employers are encouraged to take the following steps:

  • Stay Informed About Employment Laws:
    Know the federal, state, and local laws protecting employees, including anti-discrimination and retaliation laws. Consult a legal professional if unsure to avoid mistakes.
  • Establish clear policies and procedures:
    Create and follow written policies on employee conduct, performance, and corrective actions to ensure fair treatment and consistency.
  • Document EVERYTHING!:
    Keep detailed records of performance issues, corrective actions, and communications to protect against wrongful termination or discrimination claims.
  • Be Transparent and Communicate Clearly:
    Provide feedback and give employees the chance to improve their performance/behavior before termination. Open communication helps build trust and avoid misunderstandings.

How Employees Can Protect Themselves
It’s really important to understand that at-will employment does not mean that employees can be fired for illegal reasons and here’s how you can protect yourselves:

  • Know Your Rights:
    Employees, please educate yourselves about federal and state laws that protect against discrimination, retaliation, and wrongful termination. Understanding your rights will help you spot when your treatment crosses the line.
  • Document Your Performance:
    Keep a record of your work performance, any feedback you receive, and any communication you have with your employer regarding your job. This documentation can serve as evidence in case of a dispute.
  • Speak Up When Necessary:
    If you feel that you're being treated unfairly or illegally, it’s important to speak up. Go to your HR department and if necessary, seek the advice of an attorney.

Conclusion
At-will employment certainly provides flexibility for both employers and employees, but it does not give employers a free pass to break the rules. Employers must still comply with the law, respect employee rights, and follow ethical guidelines in their treatment of employees. Similarly, employees should be aware of their rights and take steps to protect themselves from unfair or illegal termination.

By maintaining a respectful, transparent, and legally compliant approach, both employers and employees can ensure that at-will employment is used as it was intended—a flexible tool to balance the needs of the business and the fair treatment of workers.

As an HR professional, I’m happy to offer guidance and insights on various workplace issues. However, it’s important to remember that while I bring experience and knowledge in human resources, I’m not a lawyer. For specific legal advice tailored to your situation, it’s always a good idea to consult with a legal professional who can ensure you're in full compliance with the law and best practices.

Thank you so much for your time today! Until we meet again, but in the meantime, STAY FINE!

Your Favorite Chief HR Concierge!

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