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In: Operations Management

Are there exceptions to "at-will" employment?

Are there exceptions to "at-will" employment?

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Expert Solution

An at-will employment relationship means that either the employer or the employee is free to end the relationship at any time, with or without advance notice, and for any reason (or no reason) at all. Employment relationships are presumed to be "at-will" in all U.S. states except Montana. At-will employment seems to give at-will employers free reign to fire employees. However, "wrongful termination" is a major exception to at-will employment.

What Employers Can Do Under Employment at Will

Some of the things that employers can do under Employment at Will include termination of employment, reducing wages, changing employee benefits coverage, limiting hours worked or changing an employee’s job content and work schedule. Having formal job descriptions does not restrict employers from assigning duties not incorporated into job descriptions or from changing an individual’s work responsibilities.

Exceptions to Employment at Wil-

Not all employees or all situations are subject to the provisions of Employment at Will. Often, when you accept a job offer, your agreement will state whether you’re an employee-at-will, or covered under another type of contract.

The following are circumstances where Employment at Will may not apply-

Collective Bargaining Agreements- Employees covered by union or association agreements often have contractual provisions that stipulate when and how an employee can be fired. Unions usually have a well-defined appeals process as recourse for members who believe that they have been wrongly discharged.

Individual Employment Contracts-

Workers in some industries and at some organizations have employment contractsthat outline the terms of employment and conditions for discharge. The employer must follow the terms of the agreement.

Public Policy- Most states recognize that certain public policy guidelines limit the exercise of Employment at Will by employers. For example, employers are prohibited from firing employees who have filed claims for workers compensation, workers who have reported legal transgressions by their employer or employees who refuse to violate laws as they carry out their duties. Public policy guidelines also protect workers who are engaging in acts that are in the public interest, such as serving in the military reserve or on a jury.

Statutory Protections for Employees- State and federal laws protect employees from being discriminated against in hiring or firing. Categories of protection include race, national origin, gender, age, religion, pregnancy, family status, veteran status, disability, ethnic makeup and sexual orientation.

Well-defined company policies on termination, which are clearly outlined in employment manuals, provide protection for some employees. Verbal assertions by management that employees will not be fired without just cause may also hold up in a few instances, though these are often hard to prove.


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