An “at-will” employment relationship means the
employment relationship can be terminated by either the employer or
employee, at any time, for any reason or no reason at all (except
an illegal reason). Except for the State of Montana, the at-will
rule is the default rule in every jurisdiction in the United
States. In other words, unless there is an agreement to the
contrary, the common law presumes employment relationships to be
“at-will.”
At its core, the at-will rule produces flexibility for the
employee and employer by allowing them to enter into a relationship
without commitment. In effect, employees do not have to remain at a
job they do not want to, and employers can modify wages, benefits,
or paid time off. Taken at face value, however, the rule can also
allow for an employer to act unfairly and arbitrarily. To that end,
the courts and state legislatures have responded to employee
vulnerabilities stemming from the at-will rule by developing
exceptions through