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Exposing the myth of 'at-will' employment

April 2020 employment law letter
Authors: 
Jonathan Sterling & Brendan N. Gooley, Carlton Fields

We hear the phrase "at-will employment" all the time. Your employee handbook probably says in bold letters that employment at your company is "at will." The generally accepted definition, and the one used by courts, is that employment "at will" means either the employer or the employee can terminate the employment relationship at any time, for any reason, without penalty. In most states, the courts say employment at will applies unless the employee has an employment agreement protecting her job (which could be a collective bargaining agreement). Most importantly for employers, "at will" means an employee can be fired for any reason (or no reason) without notice. Or does it? The idea that an employer can fire someone without a reason is at worst a myth and at best ill-advised.

'At will,' only until you get sued

In many cases, an employer will need to articulate a valid (i.e., legitimate nondiscriminatory) reason for firing an employee if she makes a claim she was fired because of unlawful discrimination. Practically, that means you should always have a valid reason for firing employees and renders the standard definition of "at-will" employment a myth.

Here's how it works: When an employee claims she was fired for a discriminatory reason, she has to establish a prima facie (minimally sufficient) case, which requires her to prove facts suggesting discrimination. So what's the problem? Even if she wasn't laid off for any reason, that doesn't mean she can show she was laid off because of discrimination.

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