Guide to At-Will Employment

Understanding and operating under the at will employment policy
By CY Glover

At-will employment was established in 1937 and simply meant that either side—the employer or employee—maintained the power to terminate employment for any or no reason. Due to guidelines such as Labor Code Section 2922, wrongful termination suits filed in earlier days by employees were denied. That is slowly changing.

Employment at will operates in nearly every state in the union. However, hiring employees according to the at will employment policy isn’t as cut and dry as it was originally designed to be. It means more than “I can terminate your employment with or without cause.” This is the foundation of the policy; however, there are a few guidelines to follow:

Realize that even though your state may operate under the at will employment clause, Federal and State labor safeguards ensure that employees are not wrongfully terminated.
Have new hires and seasoned employees acknowledge and sign your company’s at-will employment policy to protect yourself from potential lawsuits.
Include training about employment at will in leadership training sessions so your management understands all of the implications of an at will employment clause, and only terminate employees for just cause.

Action Steps

The best contacts and resources to help you get it done

Ensure that your employees understand your at will employment agreement Incorporate your at will employment clause in company policy and procedures manuals, and distribute it to employees in employee handbooks. Require a written acknowledgment of receipt and understanding of the at will employment agreement by each employee.

I recommend: Review a sample at will employment agreement at Microsoft, and model your own at will employment clause after it. All Business offers an Acknowledgment of At Will Employee Status and Receipt of Employee Handbook form for download, which can track your employees' receipt of the at will employment clause, as well as other important company policies.

Train managers, supervisors and leaders on the at-will doctrine Cover the employment at will policy, including the history of employment at will, in your management training as part of a comprehensive labor law training program. When leaders are aware of the interpretation of the at will policy and the legal ways of ending at-will employment, you can avoid legal hassles later on.

I recommend: Consider incorporating Lawyer.com's points of power about an at-will employment agreement during your next leadership training session. The Management and Leadership Pack online training course package from e-Learning Center covers a full range of labor law topics, including at-will employment.

Align employment at will and employment contracts with company goals and objectives Establish a general employment contract for your organization that covers you in the event you choose to offer employment by contract. Keep in mind that if you find that you need to terminate according to at will policies, progressive documentation protects your efforts.

I recommend: Knowing the important points to include based on a sample at will employment contract, which you can download from Inc.com or Onecle, will help protect you in the end. Review guidelines for written warnings from the Law Office of Grosman, Grosman & Gale to make sure your format legally protects you.

Tips & Tactics

Helpful advice for making the most of this Guide

Train Human Resources personnel, recruiters and hiring managers how to avoid implied statements that are easily misconstrued as a promise of long-term employment. For example: 'You will lead a good team here for many, many years to come.'
If a willful termination comes into question, the employee bears the burden of proving that a termination was malicious and unrelated to business reasons.
Even in states that have at will employment, you must establish good cause. Good cause means that the employer acted upon a fair and honest cause. Termination for reasons relating to a person's race, gender, national origin, age, marital status, religion or disability is not allowed by Federal and State laws, even in employment in at will states.
Only an organization's CEO or president can enter into any type of employment agreement or contract with an employee that is contrary to a state's employment at will policy.
An employment contract, either in writing or implied, nullifies employment at will, and prevents termination at will.