Written By: Sitharam Korrapati
Instructor: Professor Jolanta Pekalska
Course: LEG500
April 26, 2013
Overview of Employment-At-Will and Exceptions to the Rule
At-Will Presumption
Employment relationships are presumed to be “at-will” in all U.S. states except Montana. The U.S. is one of a handful of countries where employment is predominantly at-will. Most countries throughout the world allow employers to dismiss employees only for cause. Some reasons given for our retention of the at-will presumption include respect for freedom of contract, employer deference, and the belief that both employers and employees favor an at-will employment relationship over job security.
At-Will Defined
At-will means that an employer can terminate an employee at any time for any reason (except an illegal one), or for no reason without incurring legal liability. Likewise, an employee is free to leave a job at any time for any or no reason with no adverse legal consequences.
Exceptions to the At-Will Presumption
Common Law * Public Policy * Implied Contract * Implied Covenant of Good Faith and Fair Dealing * Tort-Based Claims Limiting At-Will Employment * Promissory Estoppel
Statutory
* Illegal Discrimination * Retaliation (whistleblowing)
Introduction to case study
As a manager and supervisor of an accounting department, discuss the following issues related to the employment-at-will doctrine and liability of an employer based on actions and responses to the employee’s behavior and actions. Jennifer, a recent graduate, has recently been hired by your accounting firm out of college. Upon being hired, she engages in a number of different behaviors that need your attention.
Scenario One
Jennifer seems to be unable to learn the computer applications that are basic to her job responsibilities, but, consistently “tells” her boss that she is “a good worker and a genius” and that he does not