At-will employment
At-will employment is the U.S. default, absent a contract or statute saying otherwise: either party may end employment at any time for any lawful reason.
At-will status is a default rather than a guarantee, so employers commonly restate it in writing, often in the employee handbookEmployee handbook. An employee handbook is an employer’s written collection of policies, such as attendance, conduct, benefits, safety, and leave, that new hires review and acknowledge.Click to open the term. The written statement is meant to avoid an implied contract arising from other statements made during hiring or in company policies. An employment contract with a fixed term or termination only for cause can replace the at-will default. A mandatory progressive discipline policy, or a promise to terminate only for listed causes, can be read as limiting at-will status, so you typically have handbook language reviewed by employment counsel.
What does at-will status allow, and what does it not?
At-will status does not give you unlimited freedom to terminate for any reason at all. Federal and state anti-discrimination laws prohibit ending employment based on protected characteristics. Separate whistleblower and retaliation protections prohibit termination for protected activity. An arbitration agreement signed at hire does not change at-will status; it can send covered disputes to arbitration. For a sexual harassment or sexual assault dispute arising or accruing on or after March 3, 2022, the employee may choose court. Document a legitimate, non-discriminatory business reason rather than relying on at-will status alone.
- Ending the relationship at any time
- Any lawful reason, or no stated reason
- No advance notice
- A protected characteristic, such as race, sex, age, disability, or religion
- Reporting a safety violation
- Filing a workers’ compensation claim
- Exercising other legally protected rights
General information, not legal or tax advice. Apply current federal and state rules with qualified guidance.