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Updated in [July 25th, 2023]

At-will employment is a legal concept in which an employee is hired without any contractual agreement and can be dismissed by either the employer or the employee at any time, for any reason. Proponents of this rule argue that it allows for flexibility in the employment relationship and prevents employees from claiming losses due to dismissal. However, critics of the rule point to the inequality of bargaining power between employers and employees, and argue that it is unjust.

At-will employment became the default rule in the United States during the late 19th century, and was endorsed by the Supreme Court during the Lochner era. Over the 20th century, many states modified the rule by adding exceptions or changing the default expectations in the employment contract. In workplaces with a trade union recognized for collective bargaining, and in many public sector jobs, the normal standard for dismissal is that the employer must have a "just cause." Otherwise, subject to statutory rights, most states adhere to the principle that employers and employees may contract for the dismissal protection they choose.

At-will employment remains a controversial topic, and is a central topic of debate in the study of law and economics, particularly with regard to the macroeconomic efficiency of allowing employers to summarily and arbitrarily terminate employees.

Course Syllabus

Introduction

At-will Employment

At-Will at Common Law

Implied At-will

Implied-in-law contracts

The controversy