What Does At-Will Employment Mean?

As we face a “new normal” around the globe, the way we work is undergoing significant disruption. Companies of all sizes, in all industry verticals, are trading in the legacy “brick-and-mortar” model for a network of remote workers, digitally commuting from various locations. But significant changes in society’s relationship with work are not such a recent phenomenon.

Younger adults entering the workforce since the turn of the 21st century face new and different challenges than the prior generations. Legacy employment at one company for 25-30 years is quickly becoming a thing of the past. Employers continuously look to improve operational efficiencies and streamline their bottom line by reducing dependency on full-time employees.

A desire to move away from the traditional full-time employee creates drastic changes in the structure of employment itself. Global organizations choose freelancers, contract workers, and at-will employment arrangements over the legacy worker.

While these arrangements may be great for the employer, employees need to understand the framework. That is not to say that at-will employment arrangements are bad.?

The employer-employee relationship should be one of mutual benefit. Individuals entering the job market need to know how their potential employment structure will affect them and their families.?

What Is At-Will Employment??

At-will employment is an arrangement that defines the structure of a particular employer-employee relationship. While it may be inherently benign, at-will employment can be a scary prospect for employees who do not understand what at-will employment is.

If an employer offers a position “at will,” that particular employee can lose their position at any time. Employers have the right to terminate “at-will” workers, and these employees do not have the same recourse to challenge their termination as full-time W-2 employees. Essentially, employees can be fired without good cause.?

Exceptions to At-Will Employment?

In certain scenarios, employees may have more rights than the typical at-will employee. However, this works for the employer as well. Both parties may have stricter rules and regulations to follow in any of the following scenarios:

• Public Policy Exemption. If the state in which an employee works has a specific public policy against at-will employment, these employees receive additional protection.?
• Employment Contracts. Employers may have trouble terminating employees at will if there is an employment contract in place. These types of agreements, as well as collective bargaining, may protect employees and afford them more rights than a member of the typical at-will workforce.
• Fair Dealing and Good Faith. This provision prevents employers from firing at-will employees just to avoid performing their duties and responsibilities. For example, management cannot fire employees to avoid paying for benefits, retirement or paying commissions to salespeople. Employees have the right to expect these things from their supervisors to act in “Fair Dealing and Good Faith.”
• Implied Contracts. If an employer creates an implied contract with an employee, they receive protection from termination at will. Whether a legal document exists or not is irrelevant. Unfortunately, proving this legally can be challenging, and that burden falls on the employee. Experts suggest looking to your employer’s workplace policies or employee handbook. There may be language in those documents stating that employees are not at-will and can only terminate employees with good cause.

What States Are Not At-Will Employment States??

It is up to the state-level government to decide what states are not at-will employment states. Currently, Montana is the only state to protect employees from working at will. Other states within The U.S. have exceptions, but none are 100% against at-will employment.

The following states grant employees public policy exemptions:

• Alabama
• Florida
• Georgia
• Louisiana
• Nebraska
• New York
• Rhode Island

The states below provide exemptions based on implied contracts:

• Delaware
• Florida
• Georgia
• Indiana
• Louisiana
• Massachusetts
• Missouri
• North Carolina
• Pennsylvania
• Rhode Island
• Texas
• Virginia

These states offer Fair Dealing and Good Faith exemptions:

• Alabama
• Alaska
• Arizona
• California
• Delaware
• Idaho
• Massachusetts
• Nebraska
• Utah
• Wyoming

If an employee is unsure whether they are subject to at-will employment or wants more information on the protections they have, they should talk to an employer’s HR department or review their onboarding resources.

Employee Rights Under At-Will Employment

Although employers reserve the right to terminate at-will employees at any time, for almost any reason, these employees do receive certain rights and protections. One of these privileges is the ability to collect unemployment.

Depending on the state they are working in, at-will employees can collect unemployment benefits. The circumstances surrounding their termination may also matter, but if the job loss is not their fault, they would likely receive benefits.

At-will employees also have the right to challenge their termination. This is only possible in a handful of cases, so talk to an attorney or HR representative to see what is possible in the local area.

Generally, employees can challenge their termination from at-will employment in any of the following scenarios:

• Breach of Good Faith and Fair Dealing
• Existence of written or implied contracts
• Violations of Public Policy
• Fraud
• Defamation
• Retaliation
• Discrimination

In addition to protections from wrongful termination, certain states may offer at-will employees severance pay. Ultimately, the laws of the local area and the circumstances surrounding the termination will dictate the benefits a former employee can receive.

The Bottom Line of At-Will Employment?

By itself, at-will employment is nothing to worry about. If employees know what they’re up against and what rights they have, an at-will employment workplace can be an excellent one.?

At-Will Key Takeaways:?

• Review your company’s HR documentation to see how at-will employment works at your organization or if at-will employment is even allowed.?
• Do your research or consult an attorney to familiarize yourself with the laws and regulations in at-will employment states.?
• Find out what benefits are available in the event of a termination – wrongful or otherwise.

(Reporting by NPD)