The most common form of employment in the United States is at-will employment. What does it mean for someone to be employed at will, and how does that affect businesses and their employees?
Explaining At-Will Employment
At-will employment is a type of employment where an employer agrees to pay an employee for an indefinite period of time for an agreed-upon salary. Typically, at-will employment does not involve a formal contract beyond the basic documentation required for employment. This means that both the employer and the employee have the right to terminate the employment relationship at any time, for any reason as long as it does not violate any anti-discrimination laws.
Why People Work At-Will Employers
The biggest reason that people use at-will employment is simple: it is by far the easiest form of employment to engage in, with the least required negotiation or documentation. It is also very flexible, giving employers broad authority to fire employees that misbehave, fail to live up to expectations, or for no reason at all. This convenience means that, at least for the majority of employees, there is very little reason to use anything other than at-will employment.
The Alternative to At-Will Employment
The main alternative to at-will employment is the creation of an employment contract. An employment contract dictates the specific terms of an employee’s job, including the scope of their duties, their salary and benefits, and the circumstances under which they can be dismissed.
Employment contracts are usually less flexible than at-will employment, and an employer can face a breach of contract suit if they fire a contract employee for any reason not stated in the contract. However, employees are similarly bound by their contracts which means they cannot easily leave their position to pursue opportunities at other businesses and may even be restricted from departing the company to start their own business, depending on the terms of their contract.
When At-Will Employment is Appropriate
Whether at-will employment or contract employment is appropriate for a job will depend heavily on individual circumstances. If you are not sure which is better for your employees or your business, you should speak to a lawyer with experience handling employment law issues. They can advise you on what may work best for your business, and help protect you from the potential legal issues that may arise as a result.
