At-Will Employment Basics

What employers need to know about the at-will employment relationship
By Jill Thrash At-will employment means an employer can fire an employee at any time and for any reason, just as long as it is not based on an illegal reason such as the employee's gender or race. Employees who do not have a written contract or employment agreement are generally considered to be at will employees.

While at will employment laws change from state to state, there are certain well-recognized exceptions to the employment at-will doctrine. As a business owner, you need to understand these exceptions and know what they mean for you. Further, you need to let your employees know what about at-will employment and their rights. The basic exceptions are:

1. The covenant of good faith and fair dealing, where some states recognize that employers have a duty to act in good faith when ending at-will employment.
2. The public policy exception, where an employer can't fire an employee for a reason that violates the public policy of that state.
3. The implied contract exception, where employers in some states are found to have entered into an implied employment at will contract with their employees by making promises or guarantees regarding continued employment.
   

Update your employee handbook to include an at will employment policy

Update your current employee handbook to include an at will employment clause that sets forth clearly and succinctly that all employment is considered at will and employees can be fired, and can quit, for any reason. An updated employee handbook with information on at will employment basics can potentially limit liability and damages from employee lawsuits.
Try:  Business Know-how offers an employee handbook template for at-will employers that can be downloaded into Microsoft Word for copying and pasting onto your existing document. Sample Employee Handbook covers all employment policies, including at will employment, and contains state by state compliance information. You can also download screenshots so you can review content before you buy.

Have employees sign an at will employment agreement

Having at will employees sign an at will employment agreement acknowledging that they understand that they are at will employees of your business and can be fired without cause is one of the best ways of avoiding a lawsuit.
Try:  BLR offers a downloadable sample at will employment agreement and includes a free weekly compensation ezine. The Nonprofit Good Practice Guide also has a sample at will employment agreement available for download.

Review existing policies to make sure they clearly define the employment at will relationship

Take a look at your policies already in place to ensure they do not unintentionally convey to the employees an impression of continued or long-term employment. Discipline or termination policies are especially troubling if they promise the employee that certain steps will be taken or procedures followed before termination. Make sure it is clear that management can depart from these steps if necessary.
Try:  The American Bar Association provides an employment termination checklist to alert employers and employees to the many potential pitfalls to the employment at will relationship. Employer's Guide also provides a termination checklist you can print out and follow before terminating an at will employee.

• At will employment can be a legal minefield. If you have any questions at all regarding at will employment basics, you should contact an experienced employment law attorney for advice.