Corporate Governance

Employment-At-Will Doctrine

Kendall

August 3, 2014

Employment-At-Will Doctrine

Because many employees in the United States are employed without a written contract, they face the prospect of termination regardless of cause. While there are laws that seek to protect employees from wrongful termination there are particular rules and procedures, they must adhere to within the work environment. It is important to start by stating there are some exceptions to the employment-at-will doctrine, preventing the termination of employees under certain circumstances.

“Under the public-policy exceptions to employment at will, an employee is wrongfully discharged when the termination is against an explicit, well-established public policy of the State. For example, in most States, an employer cannot terminate an employee for

filing a workers’ compensation claim after being injured on the job, or for refusing to break the law at the request of the employer. The majority view among States is that public policy may be found in either a State constitution, statute, or administrative rule, but some States have either restricted or expanded the doctrine beyond this bound.

The public-policy exception is the most widely accepted exception, recognized in 43 of the 50 States.” (Muhl, 2001, p. 4)

Most states recognize the employment-at-will doctrine but there can be significant exceptions. One example is “verbal assurances of job security and written materials found in an employee handbook, pertaining to the terms of employment or termination, may alter the at-will nature of employment in New Jersey.” (http://www.xperthr.com/employment-law-manual/employment-at-will-new-jersey/6891/) In the scenarios below, as a recently–hired Chief Operating Officer (COO) in a midsize company preparing for an Initial Public Offering (IPO) numerous issues will be discussed and steps described to address the issues faced when numerous personnel problems require immediate attention and...