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Exceptions to the At-Will Rule

 
Legal Topics > Jobs and Employment > Employment Contracts > Employment Contract Law

When Is a Termination of an At-Will Employee Wrongful?

While a employment contract typically requires that an employee be fired only for just cause, an at-will employee can generally be terminated for any reason or no reason at all, as long as the reason is not wrongful.  Examples of wrongful termination include firing on the basis of discrimination, retaliation, and disability.

However, there are several other exceptions to the at-will rule that provide a claim for wrongful termination.

  • Public Policy - Most states recognize a public policy exception to the at-will rule, so that if the reason for the firing violates an accepted public policy or state or federal statute, the firing will be considered wrongful.  Under the public policy exception, it is wrongful for an employer to fire an employee for opposing criminal activities or reporting safety hazards.
  • Implied Contract - Many states also recognize an exception where an implied contract for employment has been formed.  If an employment contract exists, the conditions of employment are more defined and employers must have good cause for termination.  Courts will often find implied contracts based on direct statements from employers or in employee handbooks.  These statements could outline conditions or procedures for firing, which the court would then enforce before a termination would be lawful.
  • Covenant of Good Faith and Fair Dealing - This requirement is much more broad and reads a requirement of good faith and fair dealing into every employment relationship.  The result of this exception is that any firing must be for good cause and the ability to fire employees is strictly limited.  However, only eleven states have recognized this exception.

Do I Need a Lawyer?

The laws of wrongful termination can be very complex and differ significantly from state to state.  Also, many worker's rights and civil rights laws have detailed procedures and filing deadlines.  If you feel that you have been fired for an illegal reason, an experienced employment attorney can help you determine your rights under the law and guide you through the complicated procedures.  A lawyer can also represent you in court if needed. 

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Related Articles:
•  Agency Relationship
•  Defenses to Breach of Employment Contract
•  Firing An Employee With An Employment Contract
•  Employment Good Faith And Fair Dealing
•  Breaching an Employment Contract
•  Arbitration Agreements in Employment Contracts
•  Employment Contract Law
•  Evolution of At-Will Employment
•  At-Will Employment
Related Forums:
•  Employment Law Forum
Related Blogs:
•  Employment Law Blog
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