Employment contracts — HFD

In most states, employment is presumed to be “at-will.” This means employees can be discharged and can resign at any time, with or without cause or notice. Such discharge or resignation usually does not give the employee the right to sue unless the employee can establish that an exception to the general at-will rule applies. The most commonly recognized exceptions to at-will employment include:

• federal and state anti-discrimination laws
• the existence of a union contract requiring just cause for termination
• federal or state statutes prohibiting discharge in certain situations (such as whistleblower laws)
• violation of a state's public policy
• breach of an implied promise of good faith and fair dealing
• the existence of a contract, which puts the employer and employee in a relationship that is other than at-will

It is important to understand that state law primarily governs the employment relationship. While this chapter provides an overview of the ways in which the at-will relationship may be modified, state laws are very specific and can be complicated. Employers should consult with experienced employment counsel regarding the provisions of the laws of the states in which they have employees.

To read the full chapter, Subscribe here or Sign In
Please call us at (312) 960-9400 if this is an error or if you have any questions.