What is at-will employment? States that have at-will employment laws State-specific exceptions to at-will employment What is a covenant of good faith exemption? What is an implied-contract exemption? States with a public policy exemption Can you get fired for getting injured at work? Frequently asked questions about workers’ comp Find a local workers' comp lawyer Resources > Workers compensation Workers compensation What Is At-Will Employment & Which States Have Exceptions in 2024? Written by Victoria Muñoz Lead Attorney Published March 21, 2024 Updated April 16, 2024 3 min read Why trust us? Compass Disability offers free, high-quality workers' compensation advice to those injured at work. Our team of Stanford and Harvard trained lawyers has a combined 15+ years of legal experience, and help thousands of Americans get the benefits they deserve each year.
Why trust us? Most states have at-will employment, which brings a certain freedom to businesses and employees, but can also make it hard for workers to protect their rights. The first step is to understand what employment at will is, which states follow it, and which states have clear exemptions to it. Below we also cover how it will affect injured employees who want to file for workers' compensation .
What is at-will employment?
At-will employment allows an employer to terminate an employee's job at any time without needing "just cause" (meaning a good reason) for doing so. At-will laws also allow employees to quit at any time, including independent contractors.
There are exceptions to employment at will, mostly to prevent companies from firing workers as discrimination or retaliation. Even in an at-will state, you can't get fired for doing the following:
- Filing for workers' compensation
- Refusing to break the law
- Reporting your employer for breaking the law (acting as a whistleblower)
- Reporting sexual harassment
- Reporting discrimination
At-will states can still have labor unions, which may also negotiate with employers for additional protections against firing employees.
States that have at-will employment laws
Every state is an at-will employment state except for Montana, though Montana workers are effectively at-will for the first 12 months of their employment.
At-will employment?
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District of Columbia
Florida
Georgia
Hawaii
Illinois
Indiana
Kansas
Kentucky
Louisiana
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
State-specific exceptions to at-will employment
Beyond discrimination, there are three main types of exceptions to at-will employment, which some states follow:
- Covenant of good faith exemption
- Implied-contract exemption
- Public policy exemption
What is a covenant of good faith exemption?
The covenant of good faith exemption to at-will employment requires employers to act honestly and fairly when firing employees.
As an example, firing an employee right before they become eligible for retirement benefits or a bonus as a way to avoid paying them those benefits, would not be in good faith unless there was another legitimate reason for firing them.
As of early 2024, 13 states have a covenant of good faith exception: Alabama, Alaska, Arizona, California, Delaware, Idaho, Louisiana, Massachusetts, Michigan, Nebraska, Nevada, South Carolina, and Wyoming.
States with a covenant of good faith exemption
Covenant of good faith exemption?
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District of Columbia
Florida
Georgia
Hawaii
Illinois
Indiana
Kansas
Kentucky
Louisiana
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
What is an implied-contract exemption?
An implied-contract exemption generally requires employers to have a good reason before firing an employee who was given verbal or written notice that their job was secure or that certain procedures would be followed before a termination.
For example, if a company's employee handbook states workers will only lose their jobs with good cause, there is an implied contract. In some states, a similar verbal guarantee may be enough.
As of early 2024, 40 states (including Washington, D.C.) have implied-contract exemptions to at-will employment.
States with an implied-contract exemption
Implied-contract exemption?
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District of Columbia
Florida
Georgia
Hawaii
Illinois
Indiana
Kansas
Kentucky
Louisiana
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
States with a public policy exemption
The public policy exemption to at-will employment prevents employers from firing someone if it violates an established public policy in the state.
For example, companies can't fire a worker for missing work to engage in civic acts, like jury duty. They also can't fire people for doing something that's protected by the state constitution or state law, such as taking paid leave under the Family Medical Leave Act (FMLA) after having a baby.
Even in the states that don't explicitly follow a public policy exception, they still can't fire workers as discrimination or in retaliation for acts protected by law. For example, employees can't get fired for filing a workers' comp claim.
As of early 2024, only three states do not have a public policy exemption: Florida, Georgia, and Louisiana.
States with a public policy exemption
Public policy exemption?
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District of Columbia
Florida
Georgia
Hawaii
Illinois
Indiana
Kansas
Kentucky
Louisiana
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
Can you get fired for getting injured at work?
No, and injured workers have a right to file for workers' compensation benefits. Your employer can't fire you just because you asked about benefits, filed a claim, or started receiving benefits. They also can't fire you as retaliation for hiring to a workers' comp attorney (which isn't the same as suing your employer ).
Firing you as retaliation in any of these situations would qualify as a wrongful termination and a local employment lawyer could help you get compensation or even your job back.
It is still possible for your employer to fire you for other reasons, though. Learn more about when employers can fire employees on workers' comp .
Frequently asked questions about workers’ comp
How does workers’ comp work?
The workers’ comp process starts when you report your work injury or illness to your employer. Then you have to file a claim within a certain amount of time so you can qualify for weekly payments and reimbursement of your medical bills while you recover.
Can I get workers’ comp if the injury was my fault?
Yes. You can qualify for workers’ comp no matter whose fault the injury or illness was, as long as it happened while you were doing your job. Our guide to qualifying accidents and injuries will help you see if you could get coverage.
Do all workers qualify for workers’ comp?
You're probably eligible for workers’ comp if your employer withholds taxes from your paychecks. Independent contractors don’t usually qualify, but states may offer coverage to certain contractors, volunteers, or seasonal workers. Check with your state workers’ comp board to see exactly who qualifies in your area.
How much does workers’ comp pay?
Workers’ compensation is generally worth up to two-thirds of your pre-injury wages, but exact rates vary by state. Read more about how much workers’ comp pays in each state .
Do I need a workers’ comp lawyer?
Not everyone needs to work with a lawyer, but a workers’ comp lawyer can especially help if your claim is denied, if you get a settlement offer, or even if your claim just lasts for more than a few months. Here are some situations when a lawyer can help you .
How long do workers’ comp benefits last?
How long your benefits last varies by state, but you usually have until you reach maximum medical improvement (MMI). There are also long-term options if you can’t return to work after injury .
Is workers’ comp taxable?
No, workers’ comp benefits aren’t taxable . That's true whether you get weekly payments, a lump-sum settlement , or a settlement with a structured payment plan.
Find a local workers' comp lawyer
California
Connecticut
Georgia
Illinois
Kentucky
Maryland
Massachusetts
Michigan
New Jersey
New York
North Carolina
Pennsylvania
South Carolina
Tennessee
Wisconsin
Related resources:
How to Find a Good Workers’ Comp Lawyer
What a Workers’ Comp Lawyer Does That You Can’t
Victoria Muñoz
Lead Attorney
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