What is employment at will?

You should exercise caution when it comes to firing employees at will. You may think you have a valid reason to fire an underperforming team member, but if there seem to be exceptions or the at-will employee takes legal action, you could face serious problems. heavy fines and penalties.

It is therefore essential to keep up to date with the laws at will. Different states honor different exceptions, so it's important to be aware of why you might get in trouble depending on where your business is located.

Read our guide to find out your rights as an employer at will and any possible exceptions that might apply to your business. We'll also show you how Homebase's HR Pro tool can guide you through layoffs with minimal risk to your business.

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What is employment at will?

Employment at will refers to the legal right of employers to terminate employees for any reason outside the protections of federal and state law. And every state except Montana has an "at-will job." Basically, this law means that employers do not have to state a reason for dismissing a staff member or give notice.

But many states have exceptions to this rule, meaning an at-will employment relationship doesn't allow you to fire your staff for any reason. If an exception applies to your employee, you must prove that you terminated them for cause. And violating these exceptions may be considered wrongful dismissal depending on your location and could result in your employee taking legal action against you.

Disclaimer: The following information is intended as a guide and not legal advice. If you are considering hiring employees at will or laying off one or more of your staff, contact your state's Department of Labor office or an employment attorney, or consider contacting one of the Homebase human resources. Federal exceptions to employment at will

To protect yourself and make sure you're doing well with your team, it's best to know the circumstances under which you can't terminate employees at will. Federal law sets out two main exceptions to employment at will, which are discrimination and retaliation. Let's break down exactly what this means for you.

Discrimination

There are federal laws, as well as other state laws, prohibiting firing someone for discriminatory reasons. According to the Equal Employment Opportunity Commission (EEOC), you cannot terminate an employee for the following reasons:

Race Color Religion Sex (including pregnancy, sexual orientation or gender identity) national origin Age (40 years or more) Disability Genetic information (including family medical history) Reprisals

If one of your employees reports discrimination, you cannot fire them for revenge, according to federal labor laws. In fact, you can't treat them differently than you did before or you risk fines. The EEOC says you can't retaliate against an employee for the following reasons:

Deposition or testimony in connection with a complaint, accusation, investigation or trial Communicating a case of discrimination or harassment to a supervisor Respond to questions in a harassment investigation