The "At-Will" Doctrine
In the United States, the vast majority of employment relationships are considered "at-will." This is a legal doctrine that means both the employer and the employee are free to terminate the employment relationship at any time, for any reason, or for no reason at all, as long as the reason is not illegal.
An employer can fire an employee for a reason that seems unfair or arbitrary—for example, because they don't like the employee's favorite sports team. Similarly, an employee can quit their job without notice and without providing a reason. This flexibility is the core of the at-will principle.
The Exceptions to At-Will Employment
While the at-will doctrine is broad, it is not absolute. Federal and state laws have created several important exceptions to protect employees from wrongful termination. If a termination violates one of these exceptions, the employee may have a legal claim against the employer.
- Illegal Discrimination: This is the most significant exception. Federal laws, such as Title VII of the Civil Rights Act, the Americans with Disabilities Act (ADA), and the Age Discrimination in Employment Act (ADEA), prohibit employers from firing employees based on protected characteristics like race, color, religion, sex, national origin, disability, or age (40 and over). States often have additional protected categories.
- Public Policy Exception: Employers cannot fire an employee for reasons that violate a fundamental public policy. This includes firing an employee for refusing to perform an illegal act, exercising a legal right (e.g., filing for workers' compensation), or reporting a legal violation by the employer (whistleblowing).
- Implied Contract Exception: An implied contract can be created through an employer's words or actions, even if there is no written employment contract. For example, if an employee handbook states that employees will only be fired for "just cause" and outlines a specific disciplinary process, it may create an implied contract that overrides the at-will presumption.
- Covenant of Good Faith and Fair Dealing: Recognized in a minority of states, this exception prevents an employer from firing an employee to avoid their obligations, such as firing a salesperson right before they are due to receive a large commission.
What If I Have a Contract?
If you have a written employment contract that specifies the duration of your employment or states that you can only be terminated for "cause," you are not an at-will employee. In this case, the terms of your contract govern the conditions under which you can be fired.