At-Will Employment: US

This At-Will Employment policy explains your organization's default employment relationship in the US, and it sets clear expectations that either you or an employee may end employment at any time, with or without cause or advance notice, unless a written contract, collective bargaining agreement, or applicable law says otherwise.

The History Behind At-Will Employment Policies in the US

At-will employment is a default rule in the United States related to Employment Classification. Courts began stating the rule in the late 1800s and early 1900s, often citing Horace Wood's 1877 treatise, Master and Servant, for the idea that an indefinite hiring could be ended by either side at any time. Employers started putting the concept in writing as workplaces scaled because a clear statement reduced arguments over whether a job was meant to last for a fixed term.

At-will did not stay simple for long. Union contracts and individual employment agreements created enforceable "just cause" and term protections, and federal and state laws added hard limits on termination decisions, including Title VII of the Civil Rights Act, the ADEA, the ADA, and similar state anti-discrimination statutes. Courts also created common exceptions, including the public policy exception recognized in many states, the implied contract theory that gained traction after cases like Toussaint v. Blue Cross & Blue Shield of Michigan (1980), and the implied covenant of good faith and fair dealing that a few states recognize in some form.

Those exceptions changed the risk profile for everyday documents. Offer letters, handbooks, and even well-meaning manager statements started showing up in lawsuits as alleged promises of continued employment or specific termination procedures. Employers responded with at-will policies that say the relationship is at-will, that only a written agreement signed by an authorized leader can change that status, and that nothing in routine workplace guidance creates a contract.

Which Law is the At-Will Employment Policy Meant to Comply With?

There is no federal law that specifically requires an At-Will Employment policy for US-based employees. We include this policy anyway because it's a common best practice that answers employee FAQs and sets clear expectations.

How to Write an At-Will Employment Policy

• Start with "why" and introduce the concept of mutual fit and evolving careers.
• State the at-will rule, either side can end employment at any time, with or without cause or notice.
• Define who the policy applies to and note that written contracts, collective bargaining agreements, or applicable law can override it.
• Reserve your organization's right to change job titles and job duties to meet business needs.
• Limit who can change at-will status and require any change to be in a signed written agreement by top leadership or an authorized representative.
• Include a request for employees to provide notice before resigning.

When to Include this Policy in Your Employee Handbook

The law does not require you to publish a policy or issue a specific notice. That said, you still have to comply with the requirements that apply to you as an employer. 

Even when notice is not required, this is still the kind of policy most employers should put in their handbook or otherwise publish to employees. A well-written at-will statement helps reduce the risk of accidental promises (for example, in offer letters, handbooks, or manager conversations) that could be argued to create an implied contract, while still leaving room for your organization to follow fair, consistent practices and comply with federal, state, and local limits on termination decisions.

Other Considerations

The law applies to US employers who have at least 1 employee in the US.

Exceptions

At-will employment is different in Montana, so if your organization operates there, you'll likely need to exclude or customize this policy.