Employment-at-Will Doctrine: When it Works and Exceptions to the Rule PDF

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A research paper describing the employment-at-will doctrine; giving the definition, and examples of when it applies and when it doesn't....

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Running head: EMPLOYMENT-AT-WILL DOCTRINE

Employment-at-Will Doctrine: When it Works and Exceptions to the Rule Southern New Hampshire University

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One of the major confusions with employment law is the employment-at-will doctrine. Although it can sound harsh in some situations, it is true that an employer may fire an employee for no reason at all. This rule isn’t completely unfounded; an employer should possess the right to control the workplace, including the decisions on who does and doesn’t work within an organization. This doctrine allows for employers to fire employees for any reason, as well as allowing for employees to leave a workplace for any reason. Newer rules, laws, and statutes have come into place that limit the at-will doctrine, including anti-discrimination laws and the laws to protect individuals with disabilities. The at-will employment doctrine is absolutely necessary for workplaces; it allows for both employees and employers to correct problems in the workplace without escalating issues of continued employment of an unfit individual. Definition and Application The employment-at-will doctrine states that employers “can fire workers for good, bad, or no reasons” (Clark, Miller, Cross, 2015). The at-will doctrine works both ways, also allowing for employees to leave the workplace whenever they want for any reason. In every state in the U.S. except Montana, employee-employer relationships are assumed to be at-will (NCSL, 2008). However, if it comes to a court case, the assumed relationship may not always be enough to protect the employer. In order to definitely be protected by the employment at-will doctrine, an employer will often state during the initial job interview that he or she is an ‘at-will employer.’ By explicitly stating this fact and including it in all of the hiring paperwork, the employer ensures that he or she can be protected by the employment at-will doctrine if a wrongful termination lawsuit or dispute should arise (Handrick, 2018). The at-will doctrine has two main purposes. The first allows for employers to hire employees without having any long-term commitments. It allows an employee to work at a

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certain organization, with the freedom to leave at any time. It also provides freedom to the employer to change wage or benefits, or to choose to fire someone. The second purpose of the employment-at-will doctrine is to provide protection in the workplace. These rules protect employers from wrongful termination lawsuits (Handrick. 2018). The at-will doctrine may not always be applicable in court; there are some exceptions that will be discussed in the next section. The employment at-will doctrine also allows for employers to be able to change benefits, job duties, or pay with no prior warning or explanation. Although allowed under the at-will doctrine, this rarely happens in the workplace; many other state and federal employment laws affect the employer’s ability to randomly terminate and lower pay (Handrick, 2018). It can also decrease employee loyalty and trust if wage and benefits are adjusted with no warning. Exceptions to the Rule Although the at-will doctrine allows for employers to fire employees for “any reason,” it cannot be a product of discrimination. Public policies and federal laws provide guidelines for under which circumstances it is acceptable for an employer to fire employees, and when it is not. Discrimination and Employment Laws An example of a situation in which the at-will doctrine doesn’t apply is antidiscrimination or employment laws. There are some federal anti-discrimination laws that businesses must follow, and many states have additional laws regarding discrimination in the workplace. Many of these laws provide protection against workplace discrimination against religious views, race, sex, age, and disabilities. The Equal Pay act of 1963 prohibits pay discrimination based upon sex; the Age Discrimination in Employment Act of 1967 protects individuals aged 40 and above from being discriminated against based on their age; parts of the

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Americans with Disabilities Act of 1990 provides protection for workers with disabilities (Heathfield, 2018). Besides race, sex, or religion, employers are also required to take into consideration the employee’s family situation. Under the Family Medical Leave Act, employers must provide their employees with up to twelve weeks of unpaid leave each year to take care of family, such as the birth or adoption of a child, to care for a family member with a serious health condition, or to recover from their own serious health issues. The employer is allowed to find a replacement for the employee, so long as the individual has an equivalent job to come back to after the leave is up (FindLaw, n.d.). There are many more rules and regulations to protect employees or potential employees from discrimination within the workplace. Covenant of Good Faith Some states have adopted what is called the covenant of good faith. This means that the employer and employee owe a duty to be fair and straightforward with each other. Within states who follow the covenant of good faith, an employer must have just cause to fire an employee (Handrick, 2018). In these states, the causes under which an employee can be fired are generally written up in the initial hiring contract. If the reasons are not explicitly written out upon hiring, an employer still may fire the employee under just cause. Some common reasons are: poor job performance, harassment of other employees, stealing from the workplace, revealing trade secrets to other companies, or lying to supervisors (Hamblen, 2018). Written or Implied Contracts An employer may provide a written contract upon hiring an employee. Particular language within this contract can make the employment at-will doctrine non applicable to the employee. An outline of duties and responsibilities with specific compensation amounts within

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the contract may allow the court to rule that the employment does not fall under the at-will doctrine. If the employer wishes to avoid this, he or she should add a clause within the contract explicitly stating that the new hire will be an at-will employee (Handrick, 2018). Even without a written contract, an employer can mistakenly provide an implied contract. This happens when the employee is led to believe by the employer that he or she will not be fired, or if the employer tells the employee that he or she will receive a promotion or raise. An implied contract can take away the protection of the employment at-will doctrine during a wrongful termination lawsuit; for example, if an employer promises a raise and then fires the employee, the employee may sue for wrongful termination under an implied contract (Handrick, 2018). Conclusion The at-will doctrine is helpful in the workplace because it allows employers to fix a problem within the workplace by firing or correcting a problem employee, rather than letting the problem fester by continuing to employ an unfit individual. This doctrine also allows for employment without long-term commitment for employees, giving them more freedom to find a good job. The employment at-will doctrine allows for protection for both employees and employees against wrongful termination and other workplace lawsuits. Although at-will employment is assumed in 49 states in the U.S., there are several exceptions to the rule; it’s important for employers to be mindful and aware of what may cause the at-will doctrine to no longer apply in court. The best way for employers to be sure they’re protected is to include explicit statements of at-will employment within all hiring paperwork.

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Clarkson, K., Miller, R. L., & Cross, F. (2015). Business Law: Text and Cases. Stamford, CT: Cengage Learning. FindLaw. (n.d.) Overview of employment and anti-discrimination laws. Retrieved from https://employment.findlaw.com/employment-discrimination/overview-of-employment-and-antidiscrimination-laws.html Hamblen, K. (2018, Aug. 16.) Employment Good Faith and Fair Dealing. Retrieved from https://www.legalmatch.com/law-library/article/employment-good-faith-and-fair-dealing.html Handrick, L. (2018, Jan. 8). At will employment doctrine: How it works and 4 big exceptions. Retrieved from https://fitsmallbusiness.com/at-will-employment-doctrine/ Heathfield, S. (2018, Feb. 17.) Employment discrimination laws. Retrieved from https://www.thebalancecareers.com/employment-discrimination-laws-1919370 NCSL. (2008, April 15). At-will employment: Overview. Retrieved from http://www.ncsl.org/research/labor-and-employment/at-will-employment-overview.aspx...