Definition of At-Will Employment
At-will employment is a common practice often confused with other employment laws. With the exception of employees under contract and many public sector employment relationships, at-will employment means an employee or employer can end the working relationship at any time for any reason.
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No Employment Guarantees
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At-will employment means the employment relationship between employee and employer is not permanent. Strong job performance, perfect attendance and record sales figures cannot guarantee job stability. However, a downward spiral in the economy or organizational changes can almost guarantee changes within employment relationships. At-will employment is most appropriately defined as an employment relationship that can end at any time, for whatever reason as long as the employer does not base the termination on discriminatory reasons.
Common Misconceptions
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Common misconceptions about at-will employment include lack of understanding about whether the employee or employer can end employment at-will, as well as confusing at-will employment with the right-to-work. The employee or the employer can end the employment relationship at-will. Some believe it's only the employer who can exercise that right. An employee can just as well end her employment at any time, for any reason or for no reason, with or without notice. An employee's "right to work" means he has the right to work without being required to join a labor union that represents workers. In other words, union membership is not a condition of employment in a right-to-work state.
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Consequences
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Some companies implement policies aimed at preventing employees from exercising the right to quit without notice. Some employers require that employees provide the usual professional standard of at least two weeks' notice when they tender their resignation. In instances in which an employee does not provide the company-required notice, the employee's final paycheck may be withheld until the next pay period or the employee might forfeit payment of accrued vacation time or paid time off. In addition, an employee who doesn't provide at least two weeks' notice can be denied eligibility for future re-employment by the company.
Exceptions
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There is one state where at-will employment law is slightly different than the rest of the United States. Montana statutes codify its state laws on terminating the employment relationship at-will during the probationary term of employment. If a Montana employer does not implement a probationary time frame, six months is the default period during which the employer can end the employment relationship at-will. Other exceptions include employment that is under a mutually agreed to contract in which the employer must generally provide written notice of intent to terminate the employment relationship. Workers whose employment is covered under a collective bargaining are among those exempt from at-will employment laws. In public sector roles, employees are also usually exempt from at-will employment laws.
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References
- U.S. Bureau of Labor Statistics: The Employment At-Will Doctrine: Three Major Exceptions; January 2001
- Workplace Fairness; At-Will Employment; March 2006
- Ronald B. Standler; History of At-Will Employment Law in the USA; Ronald B. Standler; September 2000
- Montana Code Annotated 2009: Elements of Wrongful Discharge -- Presumptive Probation Period
- National Conference on State Legislatures: The At-Will Presumption and Exceptions to the Rule
