What Is At-Will Employment?
"At-will" employment means that, when there is no written contract for a set term, either the employer or the employee can generally end the job at any time, for any lawful reason or for no reason. Courts and legislatures in most states have created exceptions, such as firings that violate public policy or break promises the employer made, and federal law bars firing someone for discriminatory reasons or in retaliation for protected activity. Montana is the notable exception: after a probationary period, its Wrongful Discharge from Employment Act generally requires good cause for a discharge.
What the law says
- Under the employment-at-will doctrine, when an employee has no written employment contract and the job is of indefinite length, the employer can generally end the employment for good cause, bad cause, or no cause at all. U.S. Bureau of Labor Statistics, Monthly Labor Review (Jan. 2001), "The employment-at-will doctrine: three major exceptions"
- Example (Arizona): state law declares that the employment relationship is severable at the pleasure of either the employee or the employer, unless both parties have signed a written contract for a specified duration or one that otherwise expressly restricts the right to terminate. Arizona Revised Statutes 23-1501
- Public-policy exception: an employee may be wrongfully discharged when the firing goes against a clear, well-established public policy of the state, such as firing someone for filing a workers' compensation claim or for refusing to break the law. It is the most widely recognized exception. U.S. Bureau of Labor Statistics, Monthly Labor Review (Jan. 2001), "The employment-at-will doctrine: three major exceptions"
- Example (Arizona): an employee may bring a wrongful-termination claim if fired in breach of an employment contract, in violation of a state statute, or in retaliation for things such as refusing to violate the state constitution or a state statute, reporting such a violation, exercising workers' compensation rights, serving on a jury, or voting. Arizona Revised Statutes 23-1501
- Implied-contract exception: in many states, an employer's oral assurances or statements in handbooks, policies, or other written materials promising continued employment can create an implied contract that limits at-will firing. U.S. Bureau of Labor Statistics, Monthly Labor Review (Jan. 2001), "The employment-at-will doctrine: three major exceptions"
- Good-faith exception: some states read an implied covenant of good faith and fair dealing into the employment relationship; depending on the state, it has been interpreted to require cause for firing or to bar firings made in bad faith or with malice. U.S. Bureau of Labor Statistics, Monthly Labor Review (Jan. 2001), "The employment-at-will doctrine: three major exceptions"
- Montana's Wrongful Discharge From Employment Act makes a discharge wrongful if it was not for good cause and the employee had completed the employer's probationary period. It also covers retaliation for refusing to violate or reporting a violation of public policy, material violations of the employer's own written personnel policy, and firing based solely on legal free speech, including on social media. Montana Code Annotated 39-2-904 (2025)
- In Montana, during a probationary period either the employer or the employee may end the employment at will, for any reason or no reason, on notice to the other. The law gives employers the broadest discretion when discharging managerial or supervisory employees. Montana Code Annotated 39-2-904 (2025)
- Federal law makes it illegal to discriminate against an applicant or employee, including in firing, because of race, color, religion, sex, national origin, age (40 or older), disability, or genetic information. U.S. Equal Employment Opportunity Commission, Prohibited Employment Policies/Practices
- Federal equal employment opportunity laws prohibit punishing applicants or employees for asserting their rights, such as filing or being a witness in a discrimination charge or lawsuit, or requesting a disability or religious accommodation. U.S. Equal Employment Opportunity Commission, Retaliation
FAQ
Can my employer fire me without a reason?
In an at-will job, generally yes, unless the firing falls under an exception, such as a discriminatory or retaliatory firing, a firing that violates public policy, or one that breaks a contract. Rules differ by state.
Which reasons for firing are illegal under federal law?
Federal laws generally prohibit firing based on protected characteristics such as age, race, color, religion, sex, national origin, disability, and veteran status, and also protect whistleblowers and employees who take part in complaints under laws the Department of Labor enforces.
Is there any state that is not at-will?
Montana's Wrongful Discharge From Employment Act treats a discharge as wrongful if it was not for good cause and the employee had completed the employer's probationary period.
What counts as "good cause" in Montana?
Montana defines good cause as reasonable job-related grounds for dismissal based on things such as failure to satisfactorily perform job duties, disruption of the employer's operation, material or repeated violation of the employer's written policies, or other legitimate business reasons.
Does federal law require severance pay when I'm let go?
No. The Department of Labor states there is no requirement in the Fair Labor Standards Act for severance pay.
Can an employee handbook change at-will status?
In many states, statements in handbooks or policies, or oral assurances of continued employment, can create an implied contract that limits at-will firing. Whether this applies depends on the state.
Related
- Can You Get Unemployment If You're Fired?
- Hostile Work Environment: When Harassment Becomes Illegal
- No Tax on Overtime: How the Federal Deduction Works
- What Is the Minimum Wage? Federal vs. State
- Workplace Harassment: Your Rights Under Federal Law
- Employment Law by state
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.