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Category: Employment Law

At-Will Employment

An employment relationship where either the employer or the employee can terminate the relationship at any time, for any lawful reason, with or without cause or notice.

What Is At-Will Employment? At-will employment is the default employment arrangement in 49 U.S. states (Montana being the exception after a probationary period). Under this doctrine, either the employer or the employee may end the employment relationship at any time, for any reason that is not illegal, without prior notice or warning. This principle applies unless modified by a contract, collective bargaining agreement, or company policy. ## Exceptions to At-Will Employment - **Public policy exception** prohibits termination for reasons that violate established public policy (e.g., firing someone for filing a workers' compensation claim) - **Implied contract exception** prevents termination when an implied contract exists through employer representations, handbooks, or practices - **Implied covenant of good faith exception** requires both parties to deal fairly (recognized in limited states) ## Practical Implications While at-will employment provides flexibility for both parties, employers cannot use it to terminate employees for discriminatory reasons based on race, sex, religion, age, disability, or other protected characteristics. Federal and state anti-discrimination laws, whistleblower protections, and retaliation statutes create important limitations on the at-will doctrine.