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Under the public-policy exception to employment at will, an employee is wrongfully discharged when the termination is against an explicit, well-established public policy of the State.
Over the years, courts have carved out exceptions to the at-will presumption to mitigate its sometimes harsh consequences. The three major common law exceptions are public policy, implied contract, and implied covenant of good faith.
In United States labor law, at-will employment is an employer's ability to dismiss an employee for any reason (that is, without having to establish "just cause" for termination), and without warning, as long as the reason is not illegal (e.g. firing because of the employee's race, religion or sexuality).
Courts have established three basic exceptions to the at will doctrine: public policy, implied contract, and implied covenant of good faith.
What is the Public Policy Exception to At-Will Employment? The public policy exception to at-will employment in California labor law allows an employee to sue his/her employer when his/her termination represents a violation of an important public policy.
Employment at will, however, comes with some limitations because discrimination laws still apply. Under federal law, you cannot terminate someone because of the person's age, race, gender, color, national origin, equal pay, pregnancy, genetic information, religion or disability.
Contract employees usually have clearly defined language in their contracts pertaining to discipline and termination. At-will limitations protect employees from wrongful termination situations. Clearly defined policies surrounding discipline and termination should be detailed in your employee handbook.
This document is not a contract, but rather is known as an at-will employment agreement. Employers might ask employees to sign an offer letter, handbook acknowledgment, or other document agreeing to at-will employment, for example.
At-will contracts between an employee and an employer mean that the employee may be terminated at any time, for any reason, and the employer does not need to give any notice when this happens. No specific document is needed for this contract, so many workers are surprised to find out about their at-will status.
Courts have established three basic exceptions to the at will doctrine: public policy, implied contract, and implied covenant of good faith.