US Termination Laws: At-Will vs. Just Cause

What is it?

• Either employer or
  employee can terminate an employment contract can terminate at any time, for any reason
  (or no reason), without notice or legal liability, unless unlawful.
• Provides limited
  protections as employees can be terminated without cause unless exceptions apply.

• Employers must
  provide a valid, documented reason for termination, usually related to misconduct, poor
  performance, or business needs.
• Commonly practiced
  in unionized workplaces, government positions, or employment contracts.
• Offers greater
  protections to workers as employers must justify termination with documented
  reasons.
• Montana is the only
  state that requires just cause for terminating employees after a probationary
  period.

Applicability

• The default
  employment framework applied to most private-sector employees in all US states except
  Montana. 
• Public-sector
  employees may be excluded.
• Workers employed
  under a signed contract with custom employment agreements or employees covered by a
  union’s collective bargaining agreement may have specific termination terms.

• Applies primarily
  to employees in Montana where just justified reasons for termination are required after
  the employee’s probationary period ends.

Exceptions 

• Public Policy Exception: Employees cannot be terminated for reasons that violate public
  policy, like reporting illegal activity.
• Implied Contract Exception: Some state courts in the U.S. recognize implied contracts
  through employer statements and practices.
• Covenant of Good Faith and Fair Dealing:
  In some states, employers cannot fire employees in bad
  faith or for malicious purposes.
• Federal Protections: State and federal laws prohibit termination due to
  discrimination and retaliation.

• Union Contracts: Employees covered by collective bargaining agreements may have
  additional rights, requiring employers to follow certain procedures outlined in the
  contract before terminating an employee. 
• Public Sector Jobs: Civil service laws often require adherence to specific
  processes before termination in public sector roles.
• Contractual Provisions: Employment contracts may outline specific grounds and
  procedures for termination that an employer must follow.
• Federal Protections: Federal anti-discrimination laws and retaliation protections
  apply to just cause employment to prevent unfair terminations.

Termination Reasons

• No reason is
  required as long as it is not illegal. 

• Termination must be
  based on valid reasons, such as misconduct, poor performance, or violation of company
  policies.

Advance Notice Requirements

• No advance notice
  is required unless specified in a contract or by state law.

• Requires documented
  performance issues. 
• Often follows a due
  process involving warnings and evaluations before termination.

Legal Protections

• Title VII of the Civil Rights Act of 1964: Title VII of the Civil Rights prohibits workplace discrimination and protects employees
  from termination based on race, color, age, sex, national origin, or religion.
• Age Discrimination in Employment Act (ADEA): The
  ADEA protects
  employees aged 40 or older from being fired due to age discrimination. 
• Americans with Disabilities Act (ADA): Under the
  ADA, employees
  cannot be terminated due to physical disability and for requesting or needing
  accommodations to perform essential functions of their job (unless it causes undue
  hardship to the employer).
• Family and Medical Leave Act (FMLA): The FMLA protects
  employees from being retaliated against or terminated for taking protected leave.
• Worker and Adjustment and Retraining Notification (WARN) Act: The WARN Act
  requires employers with 100 or more employees to provide 60 days’ notice before
  large-scale layoffs or plant closures. 
• Occupational Safety and Health Act (OSH Act): OSHA prohibits employers from firing employees in retaliation for
  reporting workplace safety violations or refusal to work under unsafe conditions.

• The Wrongful Discharge from Employment Act (WDEA) provides legal
  protections against unjust termination for employees in Montana.
• Employees cannot be
  discharged in retaliation for refusing to participate in illegal activities, reporting a
  violation of public policy, or for the employee’s freedom of speech, including
  statements on social media.
• WDEA does not
  protect employees during the probation period. 
• During probation,
  either party may end employment at will, for any or no reason.

Filing Wrongful Termination Claims

• Wrongful termination claims must be filed with federal or
  state agencies within 180 to 300 days after termination.
• Employees
  terminated based on discrimination or retaliation can file a claim with the Equal Employment Opportunity Commission (EEOC).
• Employees (except
  for USPS and public-sector employees) wrongfully fired for reporting safety violations
  or exercising rights under federal safety laws can file a claim under OSHA whistleblower programs.
• If applicable,
  employees can also file a wrongful termination claim with their state’s labor or human
  rights agency. 

• Claims may be filed
  if terminations violate the terms of employment contracts or collective bargaining
  agreements.
• If an employee in
  Montana believes they were wrongfully terminated without cause, they can file a claim
  with the Montana Department of Labor and Industry within one year of termination.