At-Will Employment in the US

According to US federal labor laws, at-will employment is an arrangement where an employer or employee can end an employment contract without any previous notice or at any time. It also allows an employer to change the terms and conditions of an employment contract without legal consequences.

 

Every state in the US follows this arrangement except Montana. Employees in Montana are safe from termination without cause if they have completed a probationary period. There are also federal and state exceptions to the policy, which means that some scenarios require employee terminations to be rightfully justified. Violation of these exceptions can lead to penalties and legal action.

Employee termination image

Federal Exceptions to At-Will Employment

Under federal policy, employees can’t be terminated because of:

 

  • Discrimination
  • Refusal to carry out illegal activities
  • Whistleblowing
  • Retaliation

State Exceptions to At-Will Employment

State policies in the US dictate that an employer can’t be fired because of good faith violations, implied contracts or violation of public interest. However, these exceptions are not honored in all states of the US. To learn more, download the following poster.

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