"Right-to-Work" vs. "Employment-at-Will"

What is the difference between right-to-work and employment-at-will? 

First, right-to-work laws prohibit contractual agreements between employers and labor unions requiring that all members of the bargaining unit join the union or pay union dues.  About half the states have such laws, which vary by state, but the gist of right-to-work is that individual employees have the right to decide whether or not to join or financially support a union.

Conversely, employment-at-will means that as an employer, you can terminate an employee at any time, with or without cause or notice.  An employee may also quit under these same premises.  That’s right – an employee giving two-weeks notice is a professional courtesy but not mandatory under employment-at-will.

That said, employment-at-will does not mean that employers can declare open season on terminating employees. There are exceptions under the umbrella of at-will that can vary by state - these include:

Public Policy Exception.  Employees cannot be terminated for exercising their legal rights and obligations, such as filing workers’ compensation claims, making OSHA complaints, sitting on a jury, refusing to break the law, etc.

Implied Contract Exception.  Whether verbal or written, suggestions that employment is secure or for a defined period of time may indicate an implied contract.  Common errors include:  promises of a long, bright future; making salary offers in annual terms only; publishing improperly written progressive discipline policies; or referencing a practice of terminating only for cause.

Covenant of Good Faith Exception.  This exception says that employees have a right to expect fair and consistent treatment.  Termination that appears to be arbitrary or vindictive may violate this concept.

It is vitally important to note that each state determines to what extent it recognizes the concept of employment-at-will, as well as which of the above exceptions it upholds.  Additionally, even a well-intentioned “it’s just not working out” attempt at terminating at-will can easily backfire depending on the appearance of various circumstances surrounding the employee.  For these reasons, you should always seek professional guidance before choosing to terminate an employee under the premise of at-will.

Finally, while employment-at-will provides that employees can be fired for no cause, you can’t fire someone because of their race, religion, gender, age or any of a number of other protected classes under federal and/or state law.  To do this will leave you open to a nasty lawsuit.  To see a more comprehensive list of these protections and situations, click here to access our earlier post on this topic. http://us7.campaign-archive1.com/?u=08457ef908b8c6b551764cd87&id=6dbe98fe57&e=261bce4400

As always, we are here to answer any questions you have – just give us a call or send an email.