Ask the Expert: What does "at-will employment" actually mean?

What does "at-will employment" actually mean? How do I establish "just cause"?

At-will employment basically means that the employer or the employee can terminate their relationship at any time, for any reason. 

What this says versus what it really means is a common misunderstanding among employers. Does this mean you can arbitrarily fire an employee without documentation, without a reason? Nope. And even if you document every detail, it still may not land in your favor. The first step is that you must have an at-will employment policy statement in writing in your employee handbook and that poor performance will lead to general disciplinary action.

Being consistent in the application of your policies is critical, too. Businesses get into trouble when they don’t deal with all employees in the same manner. If you have a discipline policy, apply it fairly and consistently. Establishing “just cause” for termination is not impossible, and employers should implement these progressive discipline best practices to ensure the best possible result in the event of litigation:

1. Document the details, even verbal warnings, and use a standard form.
2. Include a witness during these meetings. Get signatures from everyone involved.
3. Stick to the facts. If you have a company policy that has been violated, name it and reiterate the desired performance.
4. Be compassionate with a poor performer, but not apologetic. If done right, a notice of termination should not be a surprise.

It is also important to know that some states have exceptions to at-will employment. The exceptions include the public policy exception, the implied contract exceptions and the covenant of good faith exception. It is in your best interest to read more and understand the specific laws in your state.  

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