Most workers in the United States are at-will employees, whether they know it or not. There are two basic categorizations for workers, the first of which is at-will. The second is contractual workers, and it often applies to executives, like CEOs or CFOs. They may have employment contracts that define their relationship – similar to NFL or NBA players – but your average employee does not.
Both sides must understand exactly how at-will employment laws apply and some of the ramifications of using this type of employment arrangement. There are pros and cons on either end.
What it means for employees
Employees benefit from at-will employment because it gives them freedom. They can take the job for exactly as long as they want it. But they are free to quit at any time, and they don’t have to cite a reason. An employee could just decide that they want to go back to school or take another job offer. Their current employer can’t prevent them from doing this because the relationship is at will. As soon as the employee has the “will” to do something else, they are allowed to do so. They don’t even have to provide notice before quitting.
What it means for employers
Employers benefit from this setup because they can terminate jobs and positions at any time. They don’t have to have a reason and workers do not have to be fired for cause. Contractual workers sometimes have protections stating that they can only be fired if there is solid evidence showing that the termination is justified. But an employer could fire an at-will employee for any reason at all, as long as it’s not illegal.
On both sides, this provides a lot of flexibility and means that working relationships are temporary. It’s important for all involved to understand exactly what legal rights and obligations they have.