What Is At-Will Employment & Which States Have Exceptions in 2024?

Most states have at-will employment, which brings a certain freedom to businesses and employees, but can also make it hard for workers to protect their rights. The first step is to understand what employment at will is, which states follow it, and which states have clear exemptions to it. Below we also cover how it will affect injured employees who want to file for workers' compensation.

What is at-will employment?

At-will employment allows an employer to terminate an employee's job at any time without needing "just cause" (meaning a good reason) for doing so. At-will laws also allow employees to quit at any time, including independent contractors.

There are exceptions to employment at will, mostly to prevent companies from firing workers as discrimination or retaliation. Even in an at-will state, you can't get fired for doing the following:

• Filing for worker's compensation

• Refusing to break the law

• Reporting your employer for breaking the law (acting as a whistleblower)

• Reporting sexual harassment

• Reporting discrimination

At-will states can still have labor unions, which may also negotiate with employers for additional protections against firing employees.

States that have at-will employment laws

Every state is an at-will employment state except for Montana, though Montana workers are effectively at-will for the first 12 months of their employment.

State-specific exceptions to at-will employment

Beyond discrimination, there are three main types of exceptions to at-will employment, which some states follow:

1. Covenant of good faith exemption

2. Implied-contract exemption

3. Public policy exemption

What is a covenant of good faith exemption?

The covenant of good faith exemption to at-will employment requires employers to act honestly and fairly when firing employees.

As an example, firing an employee right before they become eligible for retirement benefits or a bonus as a way to avoid paying them those benefits, would not be in good faith unless there was another legitimate reason for firing them.

As of early 2024, 13 states have a covenant of good faith exception: Alabama, Alaska, Arizona, California, Delaware, Idaho, Louisiana, Massachusetts, Michigan, Nebraska, Nevada, South Carolina, and Wyoming.

States with a covenant of good faith exemption

What is an implied-contract exemption?

An implied-contract exemption generally requires employers to have a good reason before firing an employee who was given verbal or written notice that their job was secure or that certain procedures would be followed before a termination.

For example, if a company's employee handbook states workers will only lose their jobs with good cause, there is an implied contract. In some states, a similar verbal guarantee may be enough.

As of early 2024, 40 states (including Washington, D.C.) have implied-contract exemptions to at-will employment.

States with an implied-contract exemption

States with a public policy exemption

The public policy exemption to at-will employment prevents employers from firing someone if it violates an established public policy in the state.

For example, companies can't fire a worker for missing work to engage in civic acts, like jury duty. They also can't fire people for doing something that's protected by the state constitution or state law, such as taking paid leave under the Family Medical Leave Act (FMLA) after having a baby.

Even in the states that don't explicitly follow a public policy exception, they still can't fire workers as discrimination or in retaliation for acts protected by law. For example, employees can't get fired for filing a workers' comp claim.

As of early 2024, only three states do not have a public policy exemption: Florida, Georgia, and Louisiana.

States with a public policy exemption

Can you get fired for getting injured at work?

No, and injured workers have a right to file for workers' compensation benefits. Your employer can't fire you just because you asked about benefits, filed a claim, or started receiving benefits. They also can't fire you as retaliation for hiring to a workers' comp attorney (which isn't the same as suing your employer).

Firing you as retaliation in any of these situations would qualify as a wrongful termination and a local employment lawyer could help you get compensation or even your job back.

It is still possible for your employer to fire you for other reasons, though. Learn more about when employers can fire employees on workers' comp.

Find a local workers' comp lawyer

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Related resources:

How to Find a Good Workers’ Comp Lawyer

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What a Workers’ Comp Lawyer Does That You Can’t

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