What is at-will employment?
December 2, 2025
In Summary
At-will employment means that the employer or the employee can end the employment relationship at any time, with or without notice, and with or without cause. It does not, however, allow an employer to terminate someone for an illegal reason, like their inclusion in a protected class or their exercise of a legal right.
Every state (except Montana) assumes the employment relationship is at-will unless there is a legal agreement in place that says otherwise. Assuming you want to maintain the at-will relationship with employees, we recommend including clear language about this in your employee handbook.
Understanding At-Will Employment
At-will employment is a foundational concept in U.S. labor law that shapes most employer–employee relationships. Under an at-will arrangement, either the employer or the employee may end the employment relationship at any time, for nearly any reason, or for no particular reason at all. This can be done with or without advance notice, and neither party is legally required to justify the decision. The flexibility of at-will employment benefits both sides: employees can leave a job that no longer fits their needs, and employers can adjust staffing as business demands evolve.
Legal Limits to At-Will Termination
Although employers do not need to establish cause to terminate an employee under the at-will doctrine, the law places clear boundaries on acceptable reasons for dismissal. Termination cannot be based on discriminatory or otherwise illegal motives. Employers are prohibited from taking adverse action against employees because of their membership in a protected class—such as race, color, religion, national origin, sex, age, disability, pregnancy, or other characteristics protected by federal, state, or local law.
Additionally, at-will employment does not permit retaliation. Employers may not terminate employees for exercising their legal rights, including filing a workers’ compensation claim, reporting safety concerns, participating in an investigation, taking protected leave, or engaging in other protected activities. These legal safeguards operate alongside the at-will doctrine to ensure fair and lawful treatment of employees.
Why Clear Handbook Language Matters
With the exception of Montana, every state presumes employment is at-will unless a contract, collective bargaining agreement, or specific legal arrangement establishes otherwise. Because misunderstandings can expose employers to risk, it is essential to communicate the at-will relationship clearly and consistently.
If your organization intends to maintain an at-will employment structure, your employee handbook should include a clear and unambiguous at-will statement. This language should explain the nature of the relationship, reinforce that policies do not create contractual rights, and state that only authorized leadership can modify at-will status in writing.
Need Support? PBS Is Here to Help
Crafting compliant policies and navigating HR complexities can be challenging. PBS is ready to guide you through developing clear handbook language, strengthening HR practices, and ensuring your organization remains compliant. Contact PBS today for expert assistance with all your HR needs.