On This Page
- What Is At-Will Employment?
- Federal Exceptions to At-Will Employment
- State Exceptions to At-Will Employment
- Which States Have Exceptions to At-Will Employment?
- Common Myths About At-Will Employment
- What To Do If You Believe You Were Wrongfully Terminated
- Frequently Asked Questions About At-Will Employment
- What Is At-Will Employment & Which States Have Exceptions? Protect Your Rights Today
What Is At-Will Employment?
At-will employment is an arrangement that allows employers to terminate employment with or without good cause, such as poor performance. It is different from employment governed by contracts or collective bargaining agreements. At-will employment allows an employer to fire you for no reason, but it does not allow an employer to fire you for an illegal reason. Federal and state employment laws prohibit unfair termination for discriminatory or retaliatory reasons.
Federal Exceptions to At-Will Employment
The federal government has enacted multiple anti-discrimination laws against unfair treatment based on protected attributes and retaliation.
Discrimination Protections
The following laws make it illegal for employers to terminate employment on the basis of one or more of the following characteristics:
LAW | PROTECTED CHARACTERISTICS |
Civil Rights Act of 1964 | Race, color, religion, sex, natural origin, pregnancy, sexual orientation, and transgender status |
Age Discrimination in Employment Act | Age of 40 and older |
Americans with Disabilities Act | Disability |
Genetic Information Nondiscrimination Act | Genetic information |
Civil Service Reform Act | Race, color, national origin, religion, sex, age, disability, marital status, and political affiliation of federal employees |
Uniformed Services Employment and Reemployment Rights Act | Military service |
Civilian Reservist Emergencies Workforce Act | FEMA reservists |
Immigration Reform and Control Act | National origin or citizenship status of workers authorized to work in the US |
Retaliation Protections
Retaliation is when an employer takes action against an employee for exercising their rights or exposing wrongdoing. The following laws prohibit termination of employment based on the following employee actions:
| LAW | PROTECTED EMPLOYEE ACTIONS |
| Fair Labor Standards Act | Filing complaints about wage and hour violations or workers’ compensation claims, or testifying in a related proceeding |
| Occupational Safety and Health Act | Exposing safety violations |
| Family and Medical Leave Act | Taking leave for personal or family members’ health conditions or for the birth or adoption of a child |
| Whistleblower Protection Act | Exposing wrongdoing as a federal employee and whistleblower |
| False Claims Act | Blowing the whistle on a company that committed fraud against the government |
| Sarbanes-Oxley and Frank-Dodd Acts | Blowing the whistle on publicly traded companies for securities fraud |
Jury Duty
Federal law also prohibits employers from firing employees for serving jury duty.
State Exceptions to At-Will Employment
Every state, except Montana, has an at-will employment law. However, even Montana allows at-will employment for probationary employees, supervisors, and managers.
Although at-will employment is nearly universal among the states, not every employment arrangement is at will. Employment contracts and collective bargaining agreements with unions include protections that restrict employers from terminating employment without just cause. Some state courts have even found that an employee handbook constitutes a contract when an employee reasonably believes it guarantees protection from at-will termination.
Which States Have Exceptions to At-Will Employment?
Most states offer at least one exception to at-will employment, protecting employees against termination in the following circumstances:
- Public policy exemption: Refusal to violate the law
- Implied contract exemption: Conduct that would lead a reasonable employee to assume a protective employment contract was created
- Good faith and fair dealing exception: Prohibition against terminating an employee for nefarious reasons, such as avoiding payment of commissions or benefits earned
States Recognizing Public Policy Exceptions
The following states protect employees from termination for refusing to violate the law at the request of or for the benefit of the employer:
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Alabama, Florida, Georgia, Louisiana, Maine, Nebraska, New York, and Rhode Island do not offer this exemption.
States Recognizing Implied Contract Exceptions
The following states protect employees from termination if an employee can prove an implied contract exists:
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Hawaii
- Idaho
- Illinois
- Iowa
- Kansas
- Kentucky
- Maine
- Maryland
- Michigan
- Minnesota
- Mississippi
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Dakota
- Ohio
- Oklahoma
- Oregon
- South Carolina
- South Dakota
- Tennessee
- Utah
- Vermont
- Washington
- West Virginia
- Wisconsin
- Wyoming
Delaware, Florida, Georgia, Indiana, Louisiana, Massachusetts, Missouri, Montana, North Carolina, Pennsylvania, Rhode Island, Texas, and Virginia do not have this exception. Implied contracts are complicated. Contact Disability Advice today if you believe an employer violated an implied contract.
States Recognizing Good Faith and Fair Dealing Exceptions
The following states protect employees from being fired in bad faith:
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Maryland
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Florida, Georgia, Louisiana, Maine, Massachusetts, New York, and Rhode Island do not offer this exception.
Common Myths About At-Will Employment
Many people assume that at-will employment gives employers the power to fire them for any reason. However, the law includes many protections against unfair employment termination.
‘At-Will Means I Have No Rights’
You cannot be fired for reasons related to discrimination or retaliation. Your state may also offer additional protections.
‘Employers Can Fire Me Without Any Consequences’
An employer can face serious consequences for wrongful termination, including the following:
- Compensatory damages
- Punitive damages
- Employee backpay
- Court-ordered reinstatement of the employee
- Administrative fines and penalties
- Loss of government contracts
- Reputation damage
What To Do If You Believe You Were Wrongfully Terminated
Legal remedies are available, but you must act quickly. Every state has time limits, known as statutes of limitations, and you could lose your right to reinstatement and damages if you miss the deadline. Here is what you can do:
Gather Evidence
Collect the following evidence:
- Contracts
- Emails
- Memos
- Employee handbooks
- Performance reviews
- Eyewitness statements
- Separation documents
File a Complaint or Seek Legal Advice
If your employer violated any laws, file a complaint with the Equal Employment Opportunity Commission or the equivalent state agency. You also may have grounds to file a lawsuit against the employer for your financial losses and emotional distress. Disability Advice can guide you and help you pursue every remedy available.
Frequently Asked Questions About At-Will Employment
Is Every State an At-Will Employment State?
Every state in the United States is an at-will employment state, except for Montana. In Montana, you can only be fired at will during your initial probationary period or if you are a management or supervisory employee.
Can I Be Fired for No Reason?
Yes, you can be fired for no reason, unless you have a contract in place, qualify for an exception, or have reason to suspect your employer’s real reason for firing you is based on discrimination or retaliation.
What if My Employee Handbook Promises Job Security?
Most employee handbooks are considered guidance on a company’s policies and procedures, rather than contracts. However, an employee handbook may be considered a contract if it explicitly states that it is a contract or includes language that would lead a reasonable employee to interpret it as such. Disability Advice can advise you whether a promise of job security constitutes a contractual obligation.
Are Government Employees At-Will?
No, most federal and state employees are not considered at-will employees, but this can vary by state and worker classification. The Trump Administration has been attempting to reclassify thousands of federal workers as at-will employees, but this effort has yet to be successful.
Can I Sue for Wrongful Termination in an At-Will State?
Yes, you can sue for wrongful termination in an at-will state if the termination violates federal or state anti-discrimination laws.
What Is At-Will Employment & Which States Have Exceptions? Protect Your Rights Today
Although your employment may involve an at-will arrangement, it does not mean you are without rights. Any employer who violates the law also violates your rights. You may be entitled to substantial compensation and reinstatement.
If you suspect you were wrongfully terminated, contact Disability Advice today for free legal guidance.
