Premium Essay

The Consequences Of Employee-At-Will Doctrine

Submitted By
Words 382
Pages 2
In the study of law and economics, an employee-at-will can be terminated at any time for any reason or no reason without incurring any legal liability however, with a few exceptions and the protections afforded by federal law. Likewise, the employee-at-will doctrine is equally applied allowing an employee to leave a job at any time without reason and with no adverse consequences. To mitigate some of the harsh consequences associated with the employee-at-will doctrine, some common law exceptions were put in place: public policy exception, implied contract exception, and covenant-of-good-faith and fair dealing exception. Public policy exception protects against wrongful discharge inconsistent with state policy, implied contract exception occurs

Similar Documents

Premium Essay

Assignment 1: Employment-at-Will Doctrine

...predominantly at-will. Most countries throughout the world allow employers to dismiss employees only for cause. Some reasons given for our retention of the at-will presumption include respect for freedom of contract, employer deference, and the belief that both employers and employees favor an at-will employment relationship over job security. At-Will Defined At-will means that an employer can terminate an employee at any time for any reason (except an illegal one), or for no reason without incurring legal liability. Likewise, an employee is free to leave a job at any time for any or no reason with no adverse legal consequences. Exceptions to the At-Will Presumption Common Law • Public Policy • Implied Contract • Implied Covenant of Good Faith and Fair Dealing • Tort-Based Claims Limiting At-Will Employment • Promissory Estoppel Statutory • Illegal Discrimination • Retaliation (whistleblowing) Introduction to case study As a manager and supervisor of an accounting department, discuss the following issues related to the employment-at-will doctrine and liability of an employer based on actions and responses to the employee’s behavior and actions. Jennifer, a recent graduate, has recently been hired by your accounting firm out of college. Upon being hired, she engages in a number of different behaviors that need your attention. Scenario One Jennifer seems to be unable to learn the computer applications that are basic to her job responsibilities, but, consistently...

Words: 2362 - Pages: 10

Premium Essay

Leg 500 Assignment 1

...Running head: EMPLOYMENT-AT-WILL DOCTRINE 1 Employment-At-Will Doctrine Name LEG 500 Date Professor EMPLOYMENT-AT-WILL DOCTRINE Employment-At-Will Doctrine Employment-At-Will Doctrine is “the common law rule that holds that whenever an employment relationship is of an indefinite duration, either party may terminate the relationship a anytime” (Halbert, 2010). The new hired Chief Operating Officer (COO) needs to understand this law in order to prepare for an IPO (Initial Public Offering). Sadly the midsize company where the COO was hired has some issues that must be addressed before addressing the public. Here are the eight scenarios that the company and new COO currently face. 2 First scenario, John posted a rant on Facebook page in which he criticized the company’s most important customer. Nowadays when working for a company, employees should know that there is no privacy when it comes to what you as individuals do or express on a social media, there is always somebody that will get the message and pass the information to a superior. In this case, John not only put the credibility of the company in jeopardy, but also his job and the trust of the client. Now the company not only has to do some damage control repair but also needs to review the policy regarding social media and let know the employees the consequences of posting negative comments about the company’s client on personal blogs or social media. The company should implement something similar to what hospitals...

Words: 1403 - Pages: 6

Premium Essay

Employment -at- Will Doctrine

...Instructor: Student: Anonymous Class: LEGAL 500 - LAW ETHICS AND COROPATE GOVERNMENT Date Due: November 2, 2013 EMPLOYMENT -AT- WILL DOCTRINE TABLE OF CONTENTS Employment -At-Will Doctrine……..............................................................................p1 Exceptions to Employment-At-Will………..…………………………………….……p2 Case Scenario Evaluations…………………………………………………….……....p3 Recommendations CEO……………………………………………………………….p5 References /Academic Resources……………………………..………………………p7 EMPLOYMENT -AT-WILL DOCTRINE In this paper, I will summarize the employment-at-will doctrine in the United States. I will evaluate the following situations: • Summarize the employment-at-will doctrine and evaluate each of the eight (8) scenarios described by determining: • Whether you can legally fire the employee; include an assessment of any pertinent exceptions to the employment-at-will doctrine. • What action you should take to limit liability and impact on operations; specify which ethical theory best supports your decision. • Take a position on whether or not you would recommend to the Chief Executive Officer (CEO) that the company adopt a whistleblower policy. Support the position. • Justify at least three (3) fundamental items that should be included in a whistleblower policy. Provide a rationale for your selection of each of the three (3) recommended items. THE AT-WILL PRESUMPTION Employment relationships are presumed...

Words: 1861 - Pages: 8

Free Essay

Demand Estimation

...Employment-At-Will Doctrine Tonia M. Igo Strayer University LEG500 Professor Renee Berry February 10, 2015 Employment-At-Will Doctrine 2 “See only that thou work; and thou canst not escape the reward” -Ralph Waldo Emerson Introduction While many Americans agree that satisfactory job performance should be rewarded with job security, amongst other benefits, the United States is the only major industrial power that maintains a general employment-at-will doctrine. As written, this doctrine is a legal ruling which gives employers broad discretion to fire employees “for a good reason, a bad reason, or no reason at all”, (Halbert & Ingulli, 2012). Likewise, an employee can quit a job at any time without legal consequences. However, it is my opinion that this doctrine provides little legal protection for at will employees; it rather serves to empower the employer because it also allows the employer to change its policies or terms of employment without notice or explanation. For instance, an employer can adjust wages, benefits, or reduce paid time off leaving at will employees at risk for sudden dismissal, modified work schedule, and unannounced decreases in pay and/or benefits. Late in the 19th century, employment at will came under heavy fire in the United States resulting in revision of state legislation to implement exceptions to the rule. Guidelines relating to employment at will are still developing in many states. The common exceptions are: (1) breach of contract by the employer...

Words: 2056 - Pages: 9

Premium Essay

Business

...Assignment #1: Employment-At-Will Doctrine LEG-500- November 3, 2013 I. Introduction The employment-at-will is a term part of the labor law in which states that an employee can be dismissed by an employer for any or no reason and without warning. Likewise, an employee is free to leave a job at any time for any or no reason with no adverse legal consequences. At-will also means that an employer can change the terms of the employment relationship with no notice and no consequences. “For example, an employer can alter wages, terminate benefits, or reduce paid time off. In its unadulterated form, the U.S. at-will rule leaves employees vulnerable to arbitrary and sudden dismissal, a limited or on-call work schedule depending on the employer’s needs, and unannounced cuts in pay and benefits” (Glynn, Sullivan, & Arnow-Richman, 2007). There is also the at-will presumption in which it is a default rule that can be modified by contract. For example, a contract may provide for a specific term of employment or allow termination for cause only (Glynn, Sullivan, & Arnow-Richman, 2007). Causes can generally include reasons such as poor employee performance, employee misconduct, or economic necessity. The employment contract would state the reasons or actions that would lead to termination for cause. Also, over the years, courts have carved out exceptions to the at-will presumption to mitigate its sometimes harsh consequences. The three major common law exceptions are public...

Words: 627 - Pages: 3

Free Essay

Duty to Rescue

...employment-at-will doctrine and the liability to the employer. Scenario 1: This scenario deals with an employee who has failed to learn the computer applications that are basic to the job requirements. The scenario assumes that the employee has received a few months of training and support, yet is unable to complete the required tasks in an efficient and effective manner. In analyzing this scenario, the first step I would take in addressing the issue at hand, is to formally counsel the employee in writing, as the information presented does not state if that has been done. The counseling would serve multiple purposes. First, it would serve as a means to formally document the employee’s lack of skills, competency, and abilities, as it relates to the requirement of the job. Secondly, it would clearly delineate the expectations of the position, the criteria under which they will be evaluated, and when the next evaluation will take place. The counseling would also inform the employee that failure to improve may result in administrative action, up to and including termination. Lastly it would require the employee acknowledge via signature that they have been counseled. The reason I have chosen to take the written counseling approach, rather than immediate termination is because the information provided is vague, in that it does not specify whether the training and support the employee has received is adequate. It also does not state whether the employee has been informed...

Words: 1749 - Pages: 7

Premium Essay

Government Contract

...Employment-At-Will Doctrine Deborah Lumpkin Dr. Boneita Campbell LEG 500- Law, Ethics and Government Strayer University November 9, 2015 Abstract The purpose of this paper is to analyze the employment-at-will doctrine and determine what, if any, exceptions and liabilities exist in the state of Alabama, before taking action on current personnel issues Keywords: [Click here to add keywords.] Employment-At-Will-Doctrine Employment-At-Will-Analysis and Definition In this paper, we will discuss the Employment-At-Will Doctrine. We will then evaluate three scenarios described by determining two things: 1) Whether we can legally fire the employee; and 2) what primary action(s) should be taken to limit liability and impact on operations. We will specify the ethical theory that best supports our decision. Finally, we will examine Alabama’s policy on employment-at-will and provide an actual example where an employer or employee utilized the employment-at-will doctrine within the last five (5) years. Definition of Employment-At-Will Employment-at-will is a legal rule that developed in the nineteenth century, giving employer’s unfettered power to “dismiss their employees at will for good cause, for no cause, or even for cause morally wrong, without being thereby guilty of a legal wrong.” The economic philosophy of laissez-faire provided theoretical support for employment-at-will. Its...

Words: 2302 - Pages: 10

Premium Essay

Managing Thru Employment at-Will

...Managing Thru Employment At-Will Employee lawsuits are distracting, expensive and some would argue – avoidable. Over the past 20 years, employee lawsuits have risen 400% and the settlements could cost hundreds of thousands, if not, millions of dollars for the company (Craemer, 2010). It is important that company personnel, managers and their employees alike, understand the policies that could lead to an unpleasant and messy litigation process. In this paper, we will discuss four employment situations for me to consider through the lens of management. In the first example, the employee seems to be unable to learn the computer applications that are basic to her job responsibilities, but, consistently “tells” her boss that she is “a good worker and a genius” and that he does not “appreciate her”. Even after a few months of training and support, she is unable to use the computer tools to be productive and efficient in completing the required tasks. Virtually, all states that uphold the Doctrine of Employee At-Will to some degree depending on the state. The Doctrine of Employment At-Will is a legal concept which states that in the absence of employment contracts (i.e. collective bargaining agreements or other expressed contracts) either party can end the relationship for any reason with no liability. Although the doctrine is well established in the American legal system, it has been eroding in recent years. “Many employers now find that the legal environment relative to the...

Words: 2061 - Pages: 9

Premium Essay

Employment at Will

...Employment-At-Will Doctrine Strayer University Professor LEG 500 Law, Ethics, and Corporate Governance The Employment-At-Will doctrine continues to be favored by employers and employees in various forms thru out numerous types of companies. The doctrine gives employers and employees the right to terminate terms of their employment “for a good reason, a bad reason, or no reason at all” (Halbert Ingulli, 2012, page 46). There are some restrictions to the at- will doctrine in which an employer may not terminate an employee’s employment. Some of the following restrictions are “employer from terminating employees in violation of well-established public policy of the state”, “filing a workers' compensation claim after an on-the-job injury” and/or “refusal to violate the law at the employer's request” in the article Employment-At-Will Doctrine. The following violations can best be classified under three main exceptions to the At-Will place of employment. They are Public Policy, Discrimination or retaliation, and Implied Contract. We will discuss the three examples of scenarios and one real world situations and see if they fall into one of the three exceptions to At-Will employment. The first example is scenario three, Bill using his company-issued BlackBerry to run his own business on the side. Let’s assume that when Bill was given the blackberry, he signed a company property agreement form stating usage and restrictions. In the company property agreement form, it never...

Words: 1826 - Pages: 8

Premium Essay

Hcs/205

...Ethics Case Study Stacey HCS/335 September 22, 2011 Dr. Lawrence Fergus Ethics Case Study The purpose of this paper is to discuss a hypothetical case analysis involving Dr. Williams’ office assistant Jerry McCall. Jerry was in the office answering phones while the receptionist was at lunch when he received a call from a patient who stated he had an urgent need for a prescription called into the pharmacy. The patient was leaving town within minutes and needed the medication prior to catching his flight. The paper will discuss Jerry’s qualifications to write prescription medications. The doctrine of respondeat superior and how it applies to Jerry in this situation is discussed. Problem-solving methods and major legal and ethical issues that would be helpful in Jerry’s decision making are also conferred. Scope of Practice Jerry McCall is Dr. Williams’ office assistant. He is received training as both a Licensed Practical Nurse (LPN) and a Medical Assistant (MA). However, according to the scope of practice of both an LPN and MA, neither is permitted to write prescriptions and call them into the pharmacy (Fremgen, B., 2009). An MA’s scope of practice does not allow for them to write, refill, or call in prescription medications under any circumstances. This practice does not fall within their scope of practice and doing so would be unethical and illegal. Writing prescriptions is not in the scope of practice of an LPN and therefore Jerry should not write this prescription...

Words: 1025 - Pages: 5

Premium Essay

Employment at Will

...Anthony Ellis Employment-at-Will Exceptions When operating a company, one must make sure that the hiring process lines up with the employment laws. One main concern to consider is whether the person hired is an employee or an independent contractor. A major topic that reflects employee and independent contractor is employment-at-will. Independent contractors and employees are not the same. The characteristics of each affect the manner in which a variety of taxes are withheld and the legal consequences that may arise. Each employee will have a set amount of social security, medicare, federal, and states taxes withheld from his or her pay. This paper will distinctively explain the difference between employees and independent contractors and how employment-at-will exceptions can protect organizations. Employee and Independent Contractor The employees of Fast Tax Service, Incorporation are considered as employees. A common rule of an employee is anyone who performs services for a business and the employer has control what will be done and how it will be done (Kerch, 2012). Therefore, anyone who works for company and has to abide by final decisions made by the supervisor or employer is considered an employee. The following are requirements of an employee: o performs duties dictated or controlled by others o receives training for work to be done o works for only one employer (Small Business Administration (SBA), 2012). Employees have to report to the...

Words: 771 - Pages: 4

Premium Essay

Employment at Will

...Employment-At-Will Doctrine The United States of America is one of the few countries where employment is primarily at-will. All states except Montana presume such employment relationship in the U.S (2005, Ewing, North, Taylor). Most countries of the world allow employers to dismiss employee only for cause. Some of the reasons given for the retention of the at-will presumption include respect for freedom of contract, employer deference, and the belief that both employers and employees favor an at-will employment relationship over job security. At-will means that an employer can terminate an employee at any time for any reason excluding some discriminatory reasons, or for no reason without incurring legal liability. Similarly, an employee has right to leave a job at any time for any or no reason with no adverse legal consequences. Paul Karen (Karen, 2013) also states that: At-will also means that an employer can change the terms of the employment relationship with no notice and no consequences. For example, an employer can alter wages, terminate benefits, or reduce paid time off. In its unadulterated form, the U.S. at-will rule leaves employees vulnerable to arbitrary and sudden dismissal, a limited or on-call work schedule depending on the employer’s needs, and unannounced cuts in pay and benefits. The at-will presumption is a default rule that can be modified by contract. For example, a contract may provide for a specific term of employment or allow termination for cause...

Words: 1155 - Pages: 5

Free Essay

Leg 500 Week 5

...Employment At Will Doctrine Stephen C Wilburth Jr LEG 500 May 1st, 2014 Lateefah Muhammad Abstract This is the doctrine in American law which defines how the employment relationship can be terminated by either party by giving advance notice or even without one. Privacy management tools help organizations conduct privacy impact assessments, check processing activities against requirements from privacy regulations, and track incidents that lead to unauthorized disclosures (investigation, remediation and reporting). They analyze and document data flows of personal information (nature of data, purpose of processing, data controller), support authoring and distribution of privacy policies (for which they provide templates), and track user awareness (users acknowledging having read the policies). Employment-At-Will Doctrine The employment-at-will doctrine is a legal ruling supported by companies that allows an employer the ability to dismiss an employee for any reason, other than an illegal one or no reason, without legal liability. The doctrine allows an employee to leave a position or job, at any time, without reason void of any legal consequences (Halbert & Ingulli, 2012). With employment-at-will, an employer has the right to change its policies or terms of employment without notice. Wages or benefits can be altered or reduced at any time. The doctrine can be modified by contracts drawn by the employer. The contract may specify the terms of employment or may...

Words: 2764 - Pages: 12

Premium Essay

Employment-at-Will

...Employment-at-Will Doctrine Professor: May 1, 2014 Assignment # 1 Employment-at-Will Summary of the Employment-at-Will Doctrine The concept of At-will means that an employer can terminate an employee because of any reason but the illegal dismissals does not come under this category. Similarly, the employee will also have a choice to leave the job at any time with or without any reason. There would not be any adverse legal consequence in such a case. In some cases, the contents related to the Employment-at-Will can be included in the contract. For instance, the contract can provide a specific duration of employment or include reasons for termination. The discussion of these factors during the preparation for the At-Will Employment Contract usually takes place between the employers and employees. The courts also provides legal cover for such contracts that has a lot of importance (Charles, 2001). Therefore, these are all the major aspects related to the Summary of the Employment-at-Will. This doctrine is followed in the United States at large whereas other countries, which has provided a chance of ‘good faith’ includes Canada, United Kingdom, Germany, Japan, Italy and Sweden. At-will doctrine serves to provide the employer the liberty to terminate any employee with or without any good or bad cause. Nevertheless, the good cause commitments are stated to the employee at the time of recruitment so that they can have their job security issues resolved (Free Dictionary,...

Words: 1631 - Pages: 7

Free Essay

Employment at Will Doctrine

...Employment-At-Will Doctrine Employment-at-will doctrine Summary The employment-at-will doctrine is a legal doctrine that gives employers the ability to fire employees “for a good reason, a bad reason, or no reason at all” (Halbert & Ingulli, 2012, p.46). This doctrine was developed in the 19th century under the theory that it would be just as fair for an employer to terminate an employee for any reason, as it would be for an employee to resign from employment at any time. There have been a few exceptions to this doctrine, but because they are so broad, the conditions under which an employee can claim their termination is unlawful is difficult to prove. According to the Bureau of Labor Statistics, there are three exceptions to the employment-at-will doctrine. These address terminations that do not seem just although they technically comply with the doctrine requirements (Muhl, 2001). The first exception is a termination that undermines an action that would be beneficial for society, or is a violation of a State’s public policies. The next exception prohibits employee termination after an implied contract has been established from written assurances, a company handbook, policies or behavior. Finally, an implied covenant of “good faith and fair dealings” between employer and employee is an exception that is the least used among the 50 states. In certain cases, such as those protecting financial service sectors and federal employees, whistleblowing is not a legal ground...

Words: 1578 - Pages: 7