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How does at-will employment work?

Are there any exceptions to at-will employment in the U.S.?

How does at-will employment differ from other types of employment contracts?

At-Will Employment

At-will employment refers to a concept that allows either the employer or employee to terminate the working relationship at any time, without providing advance notice or a specific cause. Some exceptions exist.

How does at-will employment work?

An at-will employment situation offers flexibility and autonomy for both parties. Employees can resign without a lengthy notice period, allowing them the flexibility to negotiate better terms or pursue career-advancing opportunities. Employers can adjust their workforce more easily and adapt to changing business needs. At-will employment puts the focus on employee skills and achievements, fostering a performance-driven working environment.

Are there any exceptions to at-will employment in the U.S.?

Yes. Federal and state anti-discrimination laws prohibit firing based on protected characteristics such as race, gender, religion, age, disability, or pregnancy. Public policy in state laws prevents termination for activities like jury duty, voting, filing workers' compensation claims, or reporting illegal activities. Some states recognize implied contracts through employee handbooks or verbal promises. Union contracts and individual employee agreements can also override at-will provisions.

How does at-will employment differ from other types of employment contracts?

At-will employment supports workforce flexibility and career freedom. Contract-based employment provides higher job security. Contracts often specify termination procedures, required notice periods, severance pay, and acceptable reasons for dismissal.

This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.

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