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What Is an At-Will Employee?

The term "at-will" employee has been thrown around a lot. But what does it really mean?

An "at-will" employee is someone an employer can terminate at-will for any reason, or for no reason

at all. Under a formal employment contract, however, individuals are not employed "at-will," and the terms of the contract govern the employment relationship.

Although the at-will employment doctrine is still technically in force in most jurisdictions across the country, it's applied differently from state to state. Some states are much more protective of employees than others. Those states have established "exceptions" to the at-will doctrine. And many state courts will "imply" a contract between the employer and employee, even where no formal agreement exists. This notion of an implied contract protects employees from discharge or demotion without cause. Evidence of an implied contract is usually based on such factors as the employer's written policies (for example, employee manuals), treatment of similarly situated employees, and even the statements of the company's managers and supervisors. Courts also look to the history of the employment relationship, and the circumstances surrounding termination, to determine whether an employee was wrongfully demoted or discharged.


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