employment-at-will doctrine
The employment-at-will doctrine is an employment law practice in which an employer and employee agree there is no set period of employment. Additionally, the employment may be terminated either by employer or employee at any time and for almost any reason. Employment-at-will is considered the default standard; therefore, employment contracts do not typically specify at-will employment. The employment-at-will doctrine contrasts just cause employment/termination, in which an employer must provide a fair reason for terminating an employee.
Exceptions
The employment-at-will doctrine does not protect termination for all reasons. These wrongful termination exceptions will typically vary by state.
Public Policy Exception
The public policy exception bars an employer from terminating employees in violation of well-established public policy of the state, or wrongful discharge in violation of public policy . For example, an employee may not be terminated for filing a workers' compensation claim after an on-the-job injury. States vary in their criteria for what violates public policy.
Implied Contract Exception
The implied contract exception means that an employee has a reasonable expectation of a fixed term or even indefinite employment based on the employer’s actions and therefore, employment is no longer at-will . Such actions may include the employer's statements, an employer’s standard practices like only firing employees for cause, or an assertion in the employee handbook that specific termination procedures will be followed.
Implied Covenant of Good Faith and Fair Dealing
Some states, like California , recognize an implied covenant of good faith and fair dealing in employment relationships. Under this exception, an employer typically may not terminate an employee in bad faith .
[Last reviewed in March of 2025 by the Wex Definitions Team ]
Keywords
Wex