Employment-at-Will Doctrine

Employment-At-Will Doctrine

Professor Thomas Demko, Strayer University

LEG500, Assignment 1

October 30, 2013

Assignment 1: Summary of Employment-At-Will Doctrine

The famous philosopher James Allen inspired the society by his writings satisfactory performance to be rewarded with job security, in early 20th century. The US courts regarded relationship of employer and employee as being on equal footing for bargaining power. However, jobs were terminated for any reason by either parties and that eventually resulted in employees forming a union in the 60s. The union requirement for “just cause” and procedures for arbitrating wrongful discharge seeded first legislative protections, which are described below.

Public policy, created by the court in the late 20th century for establishing a balance between employer’s interest in keeping business profitably, the employee’s interest in earning a livelihood, and society’s interest in maintaining public policies. The definition of public policy is varies from State to State, however most States let judges to declare it beyond their constitution.

Implied contract, implication by hiring official or in handbooks that employment will continue as long as employee’s performance is adequate or it will end only for “just cause”, and the employer is obliged to follow specific procedure before disciplining or discharging employee. This is practiced in 38 of 50 States, for some courts regard that benefits conferred for the parties cannot be the rights of traditional contract, and employer has to make it clear that their policies do not create contractual obligations.

Covenant of good faith and fair dealing protects extended employment based on pure trust from abuse by employer, thereby prohibits termination motivated by malice. 11 States recognized this exception. Florida appellate court justifies the exception as “The traditional at-will employment totally subordinates an...